Via USA Today.
More and more developers are canceling or delaying condominium projects as home sales slow, construction costs soar and lenders balk at financing units that might not sell.
What's making the situation worse is a glut of high-priced condos and too few people who can afford them.
Jack McCabe, chief executive of McCabe Research and Consulting in Deerfield Beach, Fla., said desperate developers with finished condos are offering incentives in South Florida.
Freebies range from one year's free mortgage to the use of a yacht or upgraded kitchen packages. McCabe thinks some developers might even sell condo units at cost if sales continue to weaken.
McCabe believes the condo market, especially the luxury end, is at risk of a crash. Over the next few years, he sees prices falling by double-digit percentages.
Wow, free falling in the luxury end market? Locally, a few developers decided to convert their apartment rentals (they bought) from condo to rentals at least until the market picks up again. These are not pricey condominiums but rather targeting upper low to middle high income buyers.