Speculators Hijack Condo Projects
The Arizona Republic has an article on condo conversion being done in the Phoenix area. Titled 'A light at the end of real estate tunnel', it's supposed to give the idea that some relief is coming to lower income home buyers. Guess what? Speculators are mobbing the process and jacking prices through the roof.
"Jay Butler, director of the Arizona RE Center said many converted condos in the Valley are now being bought by investors who then want to turn around and sell them for a profit. 'Every major investor is looking at Phoenix's apartment market now, trying to find a condo-conversion project,' said Brad Goff."
With buyers like these, the speculators don't have to import bubble fever.
"Angela Prestinario moved into her north Scottsdale conversion two weeks ago. She bought the three-bedroom condo last year for $210,000; now they're selling for $270,000. She wants to buy another conversion as an investment."
"'I was in shock,' said Emily Haradon. 'I made an offer the day I saw it.' Haradon said a condo like hers in her complex is on the market for $164,000, a more than 38 percent markup since she bought."