Friday, March 21, 2008

A Sign of the Times

The fall of 2007, reads the sign above, most definately an unintentional double meaning. It is now almost spring of 2008 and the above development sits vacant and unbuilt, two things are at work here:

1. 2007 saw the fall of the real estate market across the board and

2. if the developers could build and sell their design above they would most certainly have dropped a slab and started to it.

So what are we talking about right here, right now, just this, a total melt down of the underlying assets that make up the real estate market. Not the paper, the mortgages, the stuff people on CNBC like to talk about, but the real assets, the land, the house, those people who live in these spaces that these instruments represent. Climb on board and fasten your seat belt because this is about to get a lot worse. "Spectacular" reads the sign below, and in the past few years, a builder could get by with a rendering, a fancy sign and this sort of BS. Not now. The only thing that will be spectacular about upcoming housing market trends is how fast and how precipitous the fall of home values will be. How do I know.... I don't, but the builders you see laying down new slabs and putting up frames through out the city are just whistling past the cemetery, hoping that no one says boo. Well...BOO!

P.S. Does that look Spectacular? You tell me, Pre-construction pricing is still available, I'm sure, but only for a limited time...Say 2010.

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