Quote:
Originally Posted by Twistys Tim
People staying away from Florida is the main reason for the real estate melt down that has occurred there. Without people wanting to move there, and create demand for housing -- the market collapsed.
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Actually it was a combination.
Average people got very greedy, they all thought they could overextend and buy extra properties that they couldn't afford to flip them.... and that can't go on forever no matter what. It drove the prices up to insanity.
The other big thing was that condo developers thought the same thing, building a crap load of towers on spec, with no real cash to back up the financiing, and again, you can't sustain the 20%+ price increases every year forever.
Things simply had to correct themselves at some point. You get to a point where nobody can afford it.
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