Apparently the condo market is struggling even more these days. An article in the Palm Beach Post: Major commercial lenders are withdrawing from financing South Florida condo construction and conversion deals, another sign the overheated market may be too hot to handle.
"We are seeing lenders overall pulling the plug," said Dan Kodsi, president of Royal Palm Communities, a developer in Boca Raton.
It's not only lenders on the construction end who are newly nervous about risk. The federal government hopes to damp the sale of exotic home mortgages which enable even credit-poor prospective homeowners to buy. So, even if condo developers get financing, condo buyers may not.
Meanwhile, here in Sarasota another 144 luxury units have been announced.
Commercial real estate loans for such ventures as malls and office buildings are receiving more scrutiny .
Collier County commissioners recently turned down a proposed development even though 3 of 5 commissioners voted for the project. Collier requires a super-majority (4 votes) for a re-zoning to pass. The article in the Naples News indicates that the threat of slowing down development has been achieved.