As I was heading to a pre-closing inspection of a new townhome this morning I happened upon the sign in the photo above. What could this possibly mean? Who was responsible and why did they need to post this sign here?
So off I went to get the definition of “suck”. It seems that the best definition available for this discussion is “to attract by using an inexorable force”. Great, but what does inexorable mean? I believe adamant or persuasive works best here.
Yes then. Condos sucked many buyers into Florida from all over the world over the past few years. I see the sign maker’s point. Many buyers were persuaded to buy condos in Florida and supply had a hard time keeping up with demand. New condos were built and many apartment complex owners converted their apartments to condos as the sucking got stronger. Many of those who were sucked in purchased while never intending to occupy the condo. All you had to do was wait a few months and you could sell to someone who was more recently sucked in. You could pocket a nice profit even with the cost of the sale factored in.
Read more on the condo conversion craze.
But alas, the sucking has waned, and many condos sit vacant looking for a buyer, or at least a tenant to call them home. Statewide, Florida condos have experienced a decline in value. Inventory is very high and buyers are now staying away. Related post.
Sales in the Tampa Bay area were down 51% in October of 2006 as compared to October of 2005. There are currently 1668 condos actively listed with brokerage firms in the City of Tampa alone. (UPDATE 8/6/07 2016 Condos For Sale) The average condo in this group has been on the market now for almost 287 days. In November, 154 condos sold in the City of Tampa. We don’t need to do the math to realize their is a large supply of condos for sale available in Tampa.
So yes, the sucking has stopped and many buyers are reluctant to even consider a condo currently. But all of this is very generalized, and if you’re in the market for a condo, do your homework to find a good buy, and make sure to seek answers for some basic questions:
- Is there a large supply of this type of housing available?
- Are there many units in the building on the market?
- Are many of the units vacant?
- Why would I want to live here?
- Why would someone else want to live here?
- Is there anything special about the location or the building (project)?
- Are there any amenities available that I can’t get elsewhere?
- What’s the rate of turnover in the building?
- Is the association organized and effective?
- Are there many problems with noise? (talk to the residents!)
- And most importantly: Does it suck?
The answers to these questions will go a long way in helping you to make a decision on what’s best for you now, and later, when it’s time to sell.
Classic.!
[...] See: Condos Suck [...]
[...] As these Channelside projects near completion, there will be many sellers looking to dispose of a property that they never intended to occupy. See: Condos Suck. [...]
[...] Many of these pre-con buyers signed contracts on speculation, with the intent to find a buyer either before closing on the property themselves, or shortly thereafter. A common, but risky practice in a heated real estate market. These buyers were essentially betting their deposits that #1, the property would be worth substantially more when it was finished (prices can’t go down?), and #2, that there would be a market with buyers once the projects were completed. See Condos Suck. [...]
[...] And this was within a few miles of where I previously happened upon the “Condo’s Suck” sign. I would think “condos” would be a fairly easy word to spell correctly, but there are some spelling challenged folks along this highway evidently. And would this clown entice you to pull over and have a look? “Oh look honey, a condo clown! Let’s pull over and buy one.” [...]
[...] See Condos Suck [...]
[...] Fast forward to present day reality, and while some smaller projects were completed in the last few years, the first major projects are now being finished. Buyers who went under contract to purchase Channelside condominiums are now closing on them in a market that has turned tail and run in the opposite direction. Many of these buyers never intended to reside in these properties, nor did they intend to hold them for any period of time. Many buyers’ sole intent was to close on their properties and then resell them in a market that had seen substantial appreciation since pen went to paper back in pre-construction. (Condos Suck). It’s a risky, speculative move that can pay great dividends if demand is still there once the mortgage payments begin or once the cash is handed over. [...]
[...] And while there are some who may be bearish on Tampa’s downtown, I would certainly agree with Mr.Gardner that when the market stabilizes, we’ll see new residents filling those empty spaces quickly. I sense quite a bit of pent up demand for downtown out there, but many would-be downtown/Channel District buyers are afraid to commit. And who can blame them with the inventory that came on the market all at once (purchased mostly by speculators… see: Condos Suck), and the feeling that no one else is out there buying alongside of them? [...]