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The apartment glut cometh – adios housing market!

Thursday, February 2, 2017 3:35

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(Before It's News)

Driving by the west-side border of downtown Denver (on I-25), I can count 9 cranes in air plus one semi-finished high-rise building.

What’s amusing about this is that there’s already an oversupply of rental apartments and condos as the 1-2 month free + free parking incentives reflect.

What will happen when all these new projects hit the market?

This is not unique to Denver. I witnessed it first-hand in New York City over the holidays. Douglas Elliman, the high profile NYC real estate brokerage, issued a report which showed that NYC real estate prices plunged in Q4, with the median sales price dropping nearly 9% from Q3.

Days on the market increased 14.6% and the number of sales dropped 3.7% I can recall from the demise of the big housing bubble that the impending housing bust started first in NYC.

I remember walking around NYC in late 2006 and seeing several apartment complexes under construction on which work had been abandoned. I would
suggest that the current bubble is already popping in several bubble areas per this canceled contract data: LINK. I also am confident that the weakness that is developing in NYC will soon spread to the rest of the country. – from the Jan 15th Short Seller’s Journal

Miami was the leading indicator of the demise of the mid-2000’s housing bubble. An apartment glut quickly appeared as speculators took almost free money and put deposits on apartments being built by reckless builders. Builders always get reckless when other people’s money is cheap. Greenspan and Bernanke made sure there was plenty of cheap capital for developers. Wolf Richter details the current apartment market implosion occurring in Miami – LINK – and coming to city near you soon.

Full article at:

http://news-uncensored-fresh.blogspot.be/2017/02/the-apartment-glut-cometh-adios-housing.html

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