Condo developers destroying Florida market


Bloomberg is reporting that condominium developers have continued building very quickly, despite the Florida real estate market's sell-off in the past year. This ignorance to the needs of the market forced the market into recession in October, becausethe Floridian economy has become very dependent on the strong housing market from 2002-2005. One expert in the article even went as far as to say that Florida is the "epicenter for all the problems that exist in the housing industry."

Bizarrely, 20,000 new condo units are being developed despite the recent sell-off in the market and lack of demand. I guess the developers missed Economics 101 -- when there is no demand, there's no reason to flood the market with supply. These ridiculous actions are only exaggerating the area's already-significant supply glut.

These events could force any companies with exposure to the Florida condo market to further write-down its book value. The ramifications of this entire debacle are becoming more and more clear, and once investors realize that a recession is developing in Florida, they will quickly become very leery to invest in companies based in Florida.

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 13, 2012: 04:27 AM

Hot Stocks

General Electric

18.875-0.255(-1.33)

Alcoa

10.29-0.35(-3.29)

Apple Inc

493.42+0.25(+0.05)

Google Inc 'A'

605.91-5.55(-0.91)

Bank of America

8.07-0.11(-1.34)

Wal-Mart Stores

61.90-0.06(-0.10)

Exxon Mobil Corp

83.80-1.08(-1.27)

Ford

12.44-0.25(-1.97)

Citigroup

32.925-0.735(-2.18)

IBM

192.42-0.71(-0.37)

Yahoo

16.14+0.14(+0.88)

Starbucks

48.82-0.38(-0.77)

Microsoft

30.495-0.275(-0.89)

Home Depot

45.33+0.06(+0.13)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

    BioHealth Investor Headlines

    WalletPop Headlines

    DailyFinance BlackBerry App

    My Portfolios

    Track your stocks here!

    Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

    BloggingStocks Partners

    More from AOL Money & Finance

    BioHealth Investor Headlines

    Page Loaded in 1329125265561 ms.