microcars - 2:01 pm on Aug 14, 2007 (gmt 0)

in case you have not noticed, there has also been a tremendous boom in new condos being built.

maybe 25-50% of the units used to be pre-sold before the construction began. These were speculators buying them who then flipped them to other speculators.

Then "regular" people got in on the "action" with interest only, 100% ARMs thinking it was a "can't lose" investment.

Now that it is not as easy to get those Interest Only, 100% loans, the buyers/speculators have dried up and many people who "invested" in new condos are now stuck with multiple mortgages that they will have to be paying.
They got No Interest 100% 2 year ARMs thinking they were going to flip the place before the interest rates started rising and and now they are stuck.

My wife is a Realtor and she saw this coming years ago.
The actual market for homes to live in is still good though.
It is the "Real Estate as investment" market that is tanking big time.