Wednesday, October 25, 2006

"People are skittish"

From Today's Asbury Park Press


The bankruptcy of Kara Homes, one of the largest home builders at the Jersey Shore, has more than enough victims: customers, employees and scores of creditors owed millions of dollars.

It has also placed a cloud over the New Jersey home building industry as potential customers wonder just how strong other builders are and if more may be following Kara into bankruptcy court.

"People are skittish," said Carolyn Villani, vice president of sales and marketing at Paramount Homes of Jackson. "People are waiting to see what happens to Kara and what happens to other builders. They are concerned about everyone right now."

On Oct. 5, East Brunswick-based Kara Homes filed for Chapter 11 bankruptcy, saying the real estate market's slowdown hurt sales and scared off lenders…..

Full story….


Anonymous Anonymous said...

If you want to know just how nuts the Long Beach Island market is, I'll give you an example. A three bedroom cape, purchased for $175,000 in 1993, sold for $255,000 in 1999, again for $505,000 in 2005 and is now for sale for $895,000. Total insanity. Reality is starting to dawn there, however, I think prices will fall 40% from here and stagnate. Good luck to the flippers who thought the gravy train would never end. P.T. Barnum said it best: "There's a sucker born every minute."

Thursday, October 26, 2006 7:38:00 AM  
Anonymous Anonymous said...

Are you saying that the house that is on the market for $895,000 will sell for $537,000?

Thursday, October 26, 2006 10:11:00 AM  
Anonymous Anonymous said...

I'd put it in the fours, actually.

Thursday, October 26, 2006 12:06:00 PM  
Anonymous Anonymous said...

I guess the builder mentioned in this article wants to unload those overpriced houses in Jackson so badly that they will do anything except lower prices. What does this tell you? They are so desperate for buyers in this dying market that they are willing to get involved in this Kara Homes debacle. BUYER BEWARE!!!

Thursday, October 26, 2006 8:41:00 PM  

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