Thursday, April 03, 2008


Tough times make for few takers at property auction

At some point prices come down to a level that it makes sense to buy. An auction is a very good way to find that floor and from this example I think we are getting closer to that floor at least in this area of Florida.

The auction, which was anticipated to take four to five hours, wound up clocking in at barely two. Two-thirds of the property on the block failed to garner a single bid.

DeCaro, who paced the stage with a headset microphone, struggled to get some momentum going and found himself at the mercy of a crowd that turned out to have largely decided they were best served by leaving their bid paddles in their laps.

By the time it was over, 67 of the 99 properties on the block had no bids.

"This was a disaster," said Fort Lauderdale broker Paul Merlesena as he stood near the door following the auction. "They're basically going to have to give them away now."

The property mentioned in the article can be viewed via Google maps at this link. I don't know the dimensions but just from eyeballing it I would have to say that 100k isn't such a bad price. The article also mentions foreign money starting to come in and take advantage of the weak dollar and falling prices. While this is not always an indicator of the bottom it is an example of prices seeking a level which represents true value not a bubble created frenzy. Maybe if you can scoop this lot up for 50k.

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