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Shadows over the condos; Liens, For-Sale Signs Show Slowdown

April 6, 2008

... Raphael Bostic, a real estate professor at the University of Southern California who is often quoted by the national media, said "the condo market has pretty much fallen on hard times across the board. They are weak on the West Coast ... and eastern cities as well."

Bostic said condos are "the most volatile" of residential properties, because they are often purchased as investments and for recreational reasons.

"With the weakness in general housing markets, far fewer people are interested in buying second homes or investment properties," he said. "This is a big expenditure, and is one of the first to go when overall economic prospects sour."

Particularly hard hit are the "flippers" -- investors who plan to resell quickly for a profit -- and first-time home buyers who may be unnerved by price declines, Bostic added...