There is another report to add to the doom and gloom list. This time from Bloomberg. The report is eye-opening:
The oversupply will force prices down as much as 30 percent, the worst decline since the 1970s, and help push Florida’s economy into recession as early as October
The article discusses how Florida’s economic fortitude was largely attributed to jobs in the real estate sector. Now that the tide has turned, these jobs have dissipated. Ugo Colombo, Tibor Hollo, and the Related Group are mentioned–the Puig bancrupcy fails to escape the report as well. But, what is interesting is how even the articles referenced experts agree that this boom is anomalous:
We sold 38 units of the Opera Tower’s 635 units to Russians,” Hollo said, his eyes widening. “I would never have dreamed it. I would understand 38 Venezuelans, not 38 Russians.
This is dumbfounding to me,” Rosser said. “It’s a building boom in the middle of a housing bust.
There is much more to what is happening than the media says. This is no conventional event in real estate history. It cannot be summed up in one, two, or 10 reports.