Expansion of Convention Center Can Pep Up Myrtle Beach Real Estate Market

The Myrtle Beach Convention center was built in 1967 as a simple civic center. Starting in 1976, it's added a 100,000 sq ft exhibit hall, grew an extra 50,000 ft, and added the Sheraton Hotel, a 400 room top quality facility.

According to city spokesman Mark Kruea, the center hosted 104 events last year: 42 trade shows, 17 consumer shows, 19 corporate conventions and 26 other activities such as concerts or competitions.

In city fiscal reports, it was indicated that this brought in more than 520,000 visitors, and annually it typically brings in around $35,000 to the area.

In 2004, the state of South Carolina granted Myrtle Beach $7 million to buy land for expansion, with the caveat of beginning work by 2009 and doubling the size of the center by 2014. Architect Steve Usry has recently submitted designs for a total 1,350,000 sq ft mega-complex that will provide space to host at least two conventions at the same time, and add another hotel with parking facilities.

Brian Monroe, director of marketing and sales told the Sun News that if we can improve our roads and air traffic abilities, the convention center can increase monetary contributions to Myrtle Beach, and bring even more people to the city. There are plans to add a performing arts center that can be used for shows, lectures, guest speakers and more. This is exciting news that will put Myrtle Beach ever closer to being a culteral resort such as Sarasota or even New York City.

It is conceivable to picture the downtown Myrtle Beach area, with its plans for other widespread renovation becoming an urban culteral mecca that increases the price of Myrtle Beach real estate and should heat up the market of home and condos in Myrtle Beach to levels of several years ago. Our overloaded concentration of resorts in North Myrtle Beach can use the boost of visitors, and even Surfside, Garden City, and Pawleys Island condos and homes can benefit from their proximity to the convention center.

The future of Myrtle Beach and the Grand Strand is an exciting one, and our beautiful coastal town is about to become a national vacation resort with jobs, attractions, and a lifestyle that is second to none! We are experts in property and Myrtle Beach condos for sale. Let us help you explore the possibilities of living in our paradise.

Myrtle Beach Real Estate Websites

We have several new websites and updates to the regular sites to announce.

A brand new site about 1031 Exchange is up and running at http://www.1031commercial.com/. It's not complete. We are conferring with Doug Clayton, my partner and a 20 year veteran experienced in the field, to see what he feels is the most helpful information to put on the site, and to better coordinate it with his company.

The IDX and MLS listings for condos in Myrtle Beach (http://www.myrtlebeachcondos.net/) is coming along very well, and we are getting what few bugs remain, ironed out. The Personal Condo Locator, or Automated Myrtle Beach MLS Emailer is proving to be VERY popular. We are getting quite a few signups and inquiries from interested buyers. The Coastal MLS was extremely messy, with multiple duplications and mis-spellings that we are working through.
If you are interested in browsing through our homes for sale, be sure and check it out.





An older site, New Myrtle Beach Resorts is being re-designed and we will have new featured properties on there. We have a small hotel in Myrtle Beach that we need some long term rentals for, and several beach houses that we'd like annual renters in. We'll be listing them and hopefully getting some interested applicants.

We are trying to decide exactly what to do about a general Myrtle Beach real estate site. For right now we are still thinking about the Homestore site. It's not a definate decision, though.

Avoiding Foreclosure

From our local CBS tv station, WBTW
Monday, Jan 14, 2008 - 06:35 PM

By Michelle Carolla
E-mail Biography

Across the country the foreclosure rate remains high. If you're facing foreclosure, there are options. It may seem like there's nothing you can do if you're multiple months behind on your home mortgage payments. Fortunately, you can possibly fix the problem with a little help.

We asked mortgage advisor Bill Blackburn of Myrtle Beach for some advice. He said the most important thing you can do is address the problem.

“If you're not responding to the letters, you're not responding to the phone calls, what is a lender to do? They're going to turn it over to the collection department,” said Blackburn. The collection department is going to turn it over to an attorney." This will tack on attorney fees and more penalties.

Some of the options to avoid foreclosure include:

Reinstating your loan--This is paying your past due amount in a lump sum.

Forbearance--This allows you to delay payments for a short time.

Repayment--can allow you to catch-up by adding a dividing the past due amount and adding to new payments.

Along the Grand Strand area, foreclosures are mainly affecting the investor market. The average home price is also holding steady at $271,000 dollars and not falling like many areas of the country. Even with homes staying on the market longer, industry experts say the resort area status is once again helping the grand strand.

If your loan is with the Veterans Association or HUD, they offer counseling services that will look at your particular situation.

VA Regional Loan Centers-- 1-800-827-1000

You may receive mail or calls from companies looking to buy your house or loan. Make sure to check them out thoroughly with the Better Business Bureau and ask for references.

The other fallout of the foreclosure market is bad credit. Non-profit credit counseling agencies can assist you with repairing your credit.
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If you are interested in finding foreclosures in Myrtle Beach or attending a real estate auction, visit our website for Myrtle Beach Real Estate for Sale.

Predatory Lending (book excerpt)

Signs of Predatory Lending

BY MARIE SPODEK, GRI, AND JEROME MAYNE

By definition, greater upfront costs and continuing higher interest payments are some of the differences between prime lending and subprime lending. While providing opportunities to build equity through homeownership, subprime lending does cost more.

Ideally, responsible, risk-based subprime lenders provide access to credit for prospective home owners with poor credit scores. However, lenders are considered predatory when their practices, although legal, are not in the best interest of the borrowers.

These lenders can include mortgage companies, creditors, mortgage brokers, and even home improvement contractors. Suspect practices include targeting certain groups of people and using pressure tactics to force borrowing decisions while not disclosing valuable decision-making in-formation.

In addition, these loans are often bundled with higher interest, lump-sum credit life insurance, excessive fees, and high prepayment penalties without regard to the borrower’s ability to repay.

Most subprime lenders and the loans they make are not subject to federal legislation, so it has been difficult to document how these practices impact predatory lending.

1. Reverse Redlining: Finding Easy Targets

After decades of redlining (when lenders would not make loans in certain communities because of racial composition), today many predatory lenders specifically seek out groups to which it will market these excessive loans. In other words, these groups become the victims of “reverse redlining.” Predatory lenders also seek borrowers who need cash due to medical issues, unemployment, or other debt-related problems, and they look for borrowers who may not be aware of their choices.

Here’s a closer look at the groups that are most often targeted by predatory lenders:

The Elderly. Many of the older generation have lived in their homes for a long time and have built up equity. They may be “house rich and cash poor.” When they encounter cash problems due to medical, unemployment, or other debt problems, predatory lenders encourage them to turn to cash-out refinancing to solve their cash flow problems. Because they may not have the experience to comparison-shop, they are vulnerable to contractors and their lenders who suggest the only way to find the money for repairs is to sign papers through the contractor or loan officer, who then charges rates that do not correspond to the risk of the loan. They may be pressured into borrowing money with payments that are so high they are unlikely to make the payments on their fixed incomes.

Minorities. Although minorities have greater access to credit than ever before, many African Americans and low-income families are paying far more for their credit than corresponding whites. According to the analysis by three reporters from the Charlotte Observer of more than 2.2 million 2004 mortgage applications, in 2005 blacks and Hispanics continued to pay more in interest rates than did whites — no matter high how their incomes.

Immigrants. Many immigrants are eager to invest in their own homes, and, in fact, owning their own homes may be one of the reasons they immigrated to the United States. However, immigrants can lack the language skills and previous homebuying experience to enable them to effectively analyze loan terms and their implications. They may also lack the bank accounts and credit histories that would qualify them for traditional loans, thus making them easy prey for predators with “alternative” loan programs.

Individuals with Low Credit Scores. Low credit scores do not always indicate poor credit risks. Sometimes, borrowers fall behind in payments due to circumstances that are not likely to be repeated: unforeseen medical bills, an unexpected job layoff. However, they can end up with unscrupulous subprime lenders who use abusive practices.

2. Charging Unnecessary Costs

As if loan predators have not found enough ways to soak these borrowers, they can always pack in more unnecessary or nonexistent products and services (generally overpriced insurance), sometimes to borrowers who have no beneficiaries. Lenders have especially added to the cost of manufactured homes by folding in overpriced fixtures, appliances, and even free trips. Before borrowers make their first payments, these loans are underwater because the market value of the collateral is less than the loan amount.

3. Giving Misleading or No Information About Loans

Predatory lenders can use bait-and-switch tactics by offering loans that seem almost too good to be true. What they initially offer is often lost in the process, and borrowers may not even realize that the cost or loan terms are not what they originally agreed to. Borrowers have been told that the FHA insures against property defects and loan fraud, neither of which is true.

Borrowers should take time to shop around and compare houses, prices, estimates, and referrals. No reputable lender will ask a borrower to sign a blank contract or loan documents, because blank forms only present the opportunity for dishonest individuals to fill in false information.

Changing the Climate: It’s Up to You

Predatory lending is a big problem in today’s economy. However, this practice is not being perpetrated by all loan officers, and not all mortgage brokers are crooks. The key to changing the climate is to educate borrowers. There are crooks in every profession, and the consumer needs to know what to watch out for.

The Book:
Mortgage Fraud and Predatory Lending: What Every Agent Should Know, is published by Dearborn Real Estate Education. The book gives warning signs and presents real-life cases to help real estate professionals protect their clients and their businesses.

Note from the publisher: This textbook is currently used across the country in continuing education classes for real estate agents and mortgage bankers. Please note that this book can be purchased through RECampus for professional development purposes; however, it cannot be purchased through RECampus for continuing education credit.

Reprinted from REALTOR® Magazine Online 01/01/2008
with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 01/01/2008. All rights reserved.

Myrtle Beach Real Estate and Condos for Sale
Be sure and visit our encyclopedia of Myrtle Beach Condos

New Real Estate Law Passed

Gaining capital
By Katy Stech (Contact)
The Post and Courier
Monday, December 31, 2007

A freshly passed federal law could help local homeowners who are in a real estate bind after losing a loved one.

The rule, the Mortgage Forgiveness Debt Relief Act of 2007, gives widowed homeowners two years to sell their primary residence while still getting capital gains tax benefits as though they were married.

In the past, recently widowed homeowners had only until the end of the year to sell their property while still qualifying for the $500,000 capital gains tax exemption they would have received as a married person. After that time elapsed, the homeowner was classified as single again.

That rule drew criticism because it rushed some recently widowed homeowners into making tough real estate decisions.

Single homeowners can avoid paying capital gains tax on up to $250,000 of the profit.
Local Congressmen Henry Brown and James Clyburn voted in favor of the rule.

Contact us for your Myrtle Beach real estate needs.

Myrtle Beach Real Estate NOT Mentioned

This is a CNN money article that doesn't mention Myrtle Beach. It's interesting that many of our "competitors" are listed. The Grand Strand probably falls in the middle somewhere. Our prices did increase dramatically, and they have dropped a small amount right now. But we didn't get overpriced like Florida and some areas, so we aren't feeling the slump as bad as they are.
The higher you go, the further you have to fall.

Then too, Myrtle Beach condos are hit harder than the single family homes. We can wait it out.

Forecast: 100 biggest markets
Analysts still are looking for a relatively mild downturn - but in some areas, things will get worse before they get better.
April 11 2007: 11:38 AM EDT

(Money Magazine) -- Major real estate forecasters are looking for prices to bounce along the bottom this year and next and fully recover by 2009.

"Once the correction from the boom works through, we'll see slow, steady growth," says Celia Chen, Economy.com's director of housing economics, who expects annual price gains of between 2 percent and 4 percent by 2009.

And on Wednesday, the National Association of Realtors said it expects its measure of home prices to fall this year for the first time since the group began tracking sales nearly 40 years ago.
Overall, her firm is predicting that the downturn that started in late 2005 will end up pushing median home prices down 8.7 percent nationwide by the time it ends in early 2008. The nationwide figures, of course, mask a great deal of local variation.

Regions that saw the greatest price appreciation (and speculation) during the boom, such as Florida, Las Vegas, Phoenix and San Diego, are now taking the hardest hit - and will continue to do so until all the air is out of the bubble.

While Fiserv is forecasting flat prices nationwide over the next 12 months, the firm expects price drops of as much as 9 percent in half of the 50 biggest markets. Home prices in Las Vegas, down 5 percent over the past 12 months, may fall another 9 percent in the next year.

Miami real estate could see a similar slump. The housing market will also struggle in nonbubbly rust belt states such as Michigan and Ohio, chiefly because of the ongoing loss of manufacturing jobs.

But in parts of the South and West - especially areas that never enjoyed double-digit annual price gains - homes continue to appreciate.

See preconstruction condos in many market areas.
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Real Estate Marketing and Myrtle Beach Condos For Sale

Tips for anyone planning to invest in real estate

The Sun Sentinel
Posted September 11, 2006

Educate yourself. A year ago, everyone was jumping on the real estate bandwagon. Learn everything you can about the market in general and the specific type of investment you're considering before you put down any money.Talk to an expert.

If you're not a financial or legal expert, consult a qualified accountant and attorney before embarking on any real estate deal.Join a real estate investors club. You'll meet people like yourself who have had both good and bad experiences. You'll also gain access to many valuable expert sources such as real estate agents, property inspectors, appraisers and contractors.

The National Real Estate Investors Association offers a list of clubs on its Web site, at www.nationalreia.com.Establish relationships with local real estate agents. The days of low housing inventory and bidding wars are over. Today, agents are anxious to unload their listings at fair prices.

Check with some local agents to see if they have properties that you can acquire. Banks, too, are taking back an increasing number of houses through foreclosure. Since they're not in the real estate business, they're anxious to sell these properties as well.

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Marketing by Myrtle Beach Web Design

North Myrtle Beach Real Estate

More stories about losing the old style of Myrtle Beach proliferate in the papers.
Here's some opinions pro and con from The State in Columbia..

Locals fear loss of area’s charm
By SAMMY FRETWELL
sfretwell@thestate.com

NORTH MYRTLE BEACH — Kathryn Bassett doesn’t like what’s going in Cherry Grove but figures she can’t do much about it.

Signs of intense development surround the beach cottage her family built 50 years ago.

Across North Ocean Boulevard, workers are constructing a mammoth parking garage and a multistory condominium project. Down the street, they’re putting up a 17-story tower at the Cherry Grove pier. Heavy trucks rumble up and down the two-lane road in front of her house.

For Bassett, a quick-witted 90-year-old with a warm smile, it won’t be long before the small beach community she loves becomes a crowded resort.

“I think it’s all stupid,” she said. “We always thought we had a family beach. We don’t have a family beach anymore.”

More change is expected as developers supplant beach houses with high-rise projects in Cherry Grove, a sand spit at the tip of North Myrtle Beach. Looser state rules for oceanfront development have spurred much of the change since 2000.

More condominiums mean Cherry Grove will lose the homey beach-cottage character that has long defined its seashore, longtime residents and visitors say.

“We love Cherry Grove, but we don’t like that,” Sandy Hoffman of Chapel Hill, N.C., said, nodding at the high-rise down the beach from her rented home. “I was shocked when we drove in this year. That wasn’t there when we came last summer.”

Cherry Grove still has rows of cottages and small motels. A handful of condominium projects have developed over the years, but — for the most part — the little community reminds many people of how the Grand Strand used to be in the 1950s and ’60s.

Year after year, people rent weathered beach houses with names such as “McLeod Castle,” “Whistling Whale,” and “Seacapades.”

Because the state and city have eased oceanfront development rules since 2001, much of the beachfront is open for large-scale projects in an area that previously allowed only beach houses. Dozens of beach cottages are for sale as landowners seek to cash in on the condo boom.

At least four major oceanfront projects are under construction or planned at the heart of Cherry Grove, from 19th to 45th avenues. Some second-row development is tied to those projects.

Property along that stretch is valued at $95 million on the Horry County tax books, but it is expected to rise.

MORE CONDOS

Those rising land values will dictate more high-density development in Cherry Grove, said Brian Haggerty, whose Atlanta company is developing a condominium building where beach cottages stood.

Having favorable rules for building — in this case, less-restrictive oceanfront setback lines — has been a key to the redevelopment craze at Cherry Grove.

“The setbacks are critical in any development,” Haggerty said. “It’s not how much land you buy, but how much land you can build on.”

Lincolnton, N.C., residents Gary and Susan McConnell, whose family owns a beach house near the Cherry Grove Pier, said they have plenty of fond memories of the community, but it’s time for change. Projects such as the Prince Resort will spruce up the area’s image, they said.

“We were delighted when we found out,” he said. “Something like this coming in will obviously be well maintained and would enhance this area.”

Next to the cottage, Greg Hartness, of Parkersburg, W.Va., rents at 2600 N. Ocean Blvd. are empty lots that once held beach cottages.

“Cherry Grove is beach houses,” he said. “But it’s kind of hard not to see the construction cranes around here.”

Haggerty’s company, Vision Investment and Development Inc., will build a $20 million condominium project (The Grove) on the site, with units selling for nearly $500,000. County records show the four beach houses on the property sold last year for a combined $6.8 million.

Bassett hopes to hold onto her land. But real estate agents might one day wear her down.

She was recently offered $3.5 million for the beach house her husband built. She doesn’t remember how much her family paid for the land, but oceanfront lots in the 1950s could be purchased for $1,000 or less.

“Cherry Grove used to be the place to live, but now it’s just getting bigger and bigger,” Bassett said.

Note: Some project news may be dated and obsolete.

Myrtle Beach Condos Guide

Myrtle Beach condos and the Pavilion

Burroughs and Chapin's plan to tear down the Myrtle Beach Pavilion has upset tourists and residents alike at every turn. I think everyone will miss the landmarks such as the rides, the bars, the little stores, and the whole package that we've grown up with for many years.



But as part of the city's PUD plan, this redevelopment is going to be a fabulous addition to downtown Myrtle Beach, and the area has become rather run down anyway, attracting a little too much of the underworld in such a highly populated area. It will be very good for the whole city, and especially for new condos in Myrtle Beach such as Bayview Resort Myrtle Beach.

A nice article appeared in the Asheville Citizen Times about it, and the feelings of loss that visitors are experiencing, thinking of losing a part of their childhoods...


Redevelopment consumes the Pavilion
by Susan Reinhardt, sreinhardt@CITIZEN-TIMES.com
published June 30, 2006 12:15 am

MYRTLE BEACH, S.C. — Since their kids were itty bitty, Earl and Betty Ann Young of Burnsville have taken them to Myrtle Beach’s most famous meeting place.

The Pavilion Amusement Park, the heart and soul of the beach, where people met, danced, fell in love and rode rides, is closing after this season.

On Sept. 24, after 58 memorable years, this 11-acre Grand Strand landmark will shut down for good.

Located directly on Ocean Boulevard, the Pavilion has always been a family favorite, a place to see and be seen. To ride the rides, eat footlong hotdogs and dance at Attic, a club right on the ocean.

“We’ve been going down there since our kids were small, at least 48 years,” said Betty Ann Young, whose family owns Mountain Air, an exclusive community of homes in Burnsville.
“That was the highlight of our trip,” she said of the Pavilion. “Sam (one of their sons) would beg from the time we left here, until we got there, to be sure we could go down to the carnival. That’s what we called it.”

The Youngs have a place at Surfside, just south of Myrtle Beach, and go down several times a year.

For nearly 60 years, it was the highlight of millions of tourists’ vacations, most of whom spoke the common language: “Meet me at the Pavilion.” It was a place where people gathered, danced, learned to shag, fell in puppy love, some even forming lasting relationships resulting in marriage.
The main draw was the rides, now up to 40 attractions, including the famous carousel and Hurricane Category 5 roller coaster, the log flume, haunted house and others.

Memories will come down with the buildings. And many people who either live or vacation there are heartbroken. MORE...

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Newest Myrtle Beach Preconstruction

The Fabulous New Sea Mist Resort Renovation and Conversion!

12 ACRES OF AFFORDABLE OCEANFRONT AND OCEANVIEW LUXURY!
Conversion Prices Starting as low as $109,000!!

The Sea Mist Resort Myrtle Beach has established itself over 50-plus years as Myrtle Beach'slargest and most complete oceanfront resort, with second-to-none amenities, including thebiggest resort waterpark on the Grand Strand.

For the first time, those who love the Sea Mist now have an unprecedented opportunity...to own their own piece of "The Mist". Redevelopment will begin with the conversion ofthe 268 pre-existing efficiency units in the Direct Oceanfront "Tides Building", and the Angled Oceanfront "Driftwood".

Conversion prices will range from $109,000 to 199,000.

Phase A of the pre-construction redevelopment is also releasing as the "New Oasis" tower, with 1, 2, 3, and 4 Bedroom deluxe condominiums from $399,900 to $700,000.

Complete redevelopment of Sea Mist's 12-plus acres will include over1500 brand new units, over 48,000 square feet of Indoor Pools and activities, 100,000 squarefeet of Sun Plazas and Waterparks, and over 20,000 square feet of retail space...with shops,restaurants, and entertainment.

From affordable to luxury, the fabulous Sea Mist redevelopment will offer vacation condos for everyone, and the present loaded amenities package will expand to include 10 pools, indoor and outdoor, lazy rivers, jacuzzis, miniature golf, themeparks, a fitness center, and much more.

Visit the Sea Mist Condos website for floorplans and more details about this once-in-a-life-time opportunity to purchase your choice of the Seamist Resort vacation condos.

Be sure to fill out our Contact Form to get on our permanent mailing list and to let our agents know of your interest and get your reservation in early. Although we are not affiliated with the developers of this project, we have information and can answer your questions.

If you would like to speak with an agent now, please feel free to call us direct. Our office is open from 9 to 5 EST. time.

Myrtle Beach Condos For Sale
The Myrtle Beach Condo Store
5307-A North Kings Hwy
Myrtle Beach, SC 29577
877-839-0005

Furniture chains to meet Strand's housing boom

Posted on Sun, Oct. 02, 2005

Furniture chains to meet Strand's housing boom
By Kathleen Vereen Dayton
The Sun News

Grand Strand homeowners dreaming of a home makeover soon will have more home furnishings options. The furniture chains are coming:

Rooms To Go is constructing its first showroom on an outparcel of Coastal Grand Myrtle Beach mall.

Badcock Home Furniture & More is planning its first store in the area.

Ethan Allen Home Furnishings will present plans to the Community Appearance Board on Thursday, although a company spokeswoman said it was too early to comment on the company's plans.

These newcomers are no doubt lured by a local housing boom that shows no signs of stopping. S.C. home sales jumped 23 percent in August compared with August 2004, according to the S.C. Association of Realtors, which placed Myrtle Beach in the top three areas of the state for home sales.

Grand Strand developers plan to build five times more condominiums this year than last year and four times the number of townhomes, according to second-quarter building permits tracked by Market Opportunity Research Enterprises, a regional real estate research group.

Note: This post is from October 2005, and may be outdated now.
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Atlantic Beach May Join the Condo Craze Now

Atlantic Beach Today

Posted on Sat, Jul. 23, 2005

Plans for oceanfront condominiums excite Town Council
By Brock Vergakis
The Sun News

Wide-open space in Atlantic Beach sits next to a high-rise building in North Myrtle Beach. Developers have proposed building large condominium complexes in the small town. One developer recently purchased six oceanfront lots; another has three such lots.

(Snippets from Article)
A Virginia development company that has a statewide reputation for investing millions to revitalize downtowns is considering the waterfront there for a possible condominium project. Combined with the condominium project presented by The Kelly Group this week, the two projects move redevelopment hopes forward.

The Marathon Development Group Inc. of Norfolk, Va., has recently purchased six oceanfront lots in Atlantic Beach, which has struggled for decades to revitalize itself after desegregation and nearly went bankrupt in the 1980s.

[The Kelly Group] committed to major redevelopment in Atlantic Beach and has said it's willing to fund a boardwalk that would stretch the entire length of the town and cede control to the city. The Strand Capital Group, which has partnered with The Kelly Group, owns adjoining property in Crescent Beach and Windy Hill and would like to see Ocean Boulevard opened up and connected to Atlantic Beach on both ends.

Uncertain condo market

It's unclear how much any condominium in Atlantic Beach might cost.
Loyd Daniel of the Strand Capital Group, which is helping fund the Kelly Group, said the four-bedroom, four-bath condominiums would sell at similar prices as neighboring communities.
See Complete Article in The Sun News

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Preconstruction Condos and Flipping

Note from webmaster: The below article is focused on New York and Florida, and does not mention Myrtle Beach preconstruction. It should be noted that our real estate prices are substantially BELOW the norm for resort property. This is just another good reason to think of investing in Myrtle Beach Real Estate.


Property flipping is sport in some markets
Flippers, converters and first-time buyers grab a slice of condos
By Glenn Roberts Jr., Inman News

Editor's note: The condo market is on fire across the country, with prices appreciating faster than single-family homes in some cases. Buyers are scrambling to be the first in line, and amateur real estate investing is akin to sports and hobbies in the hottest markets.

Rajpal "R.J." Singh is selling a "super luxury Trump condo" in Manhattan's Upper West Side for $1.7 million. He's also selling a West Side condo for $699,000 and renting out another condo in the Hudson Heights neighborhood. That's not his day job. Singh works in the software industry. Real estate investment is something he does on the side -- he is not a licensed real estate agent.

"I happen to like new construction lately," he said. He focuses on Manhattan and Queens, and believes those markets are generally still a safe bet.

The condo market has sizzled in many markets across the country, with condo-price appreciation in some cases exceeding home-price increases. Murmurs of bubbles and busts haven't scared away condo developers from low-rise, high-rise and condo-conversion projects, though. And buyers in some markets are still scrambling to be the first in line for a condo unit in a pending project -- even when that project is little more than a hole in the ground.

Singh said he has seen a lot of amateur investors getting into the real estate market, a trend that seemed to catch fire in 2003. He said the percentage of condo owners who live in their condos appears to be shrinking while the number of owners who rent out the condos is growing, which may be an indicator of this growing push by investors in the real estate market.

"I think it used to be roughly 90 percent owners, 10 percent renters -- today I've seen 70 percent owners and 30 percent renters. If it goes to 60-40 or -- God forbid -- 50-50," he said.

"Because of the stock market and mutual funds not producing much return, people are shifting that money to real estate. A lot of people need an investment vehicle and they are finding real estate as the investment vehicle for right now," he added. And then there is the demand from those people who are simply looking for housing -- "There seems to be a steady flow of people that are in need of housing, hence they are willing to pay top dollar," Singh said.

Some New York markets may already be overpriced, such as the Brooklyn waterfront, he also said. Robert Holtz, of Hoboken, N.J., is selling a condo that he bought two years ago for about $419,000. He has already purchased another condo, a unit in a new development that is under construction. He's still fixing up the condo he's living in, he said, though he said he's willing to move out now if someone will give him the right price. Then again, he said, he might consider selling the new condo instead -- if he can get the right price for that one. "If I can get $559,000 without having to move into it - I don't have to sell where I'm living at now. I can put the other one on the market." Decisions, decisions.

Condo sales, as a percentage of total real estate sales, have grown from 8.8 percent in 1994 to 12.1 percent in 2004, the National Association of Realtors reported. And the rate of condo and co-op price increases has eclipsed that of single-family homes for the past several years.

The average U.S. condo price increased 16.5 percent from 2001 to 2002, 13.7 percent from 2002 to 2003 and 16.4 percent from 2003 to 2004, the association reported, while single-family home prices increased 8.8 percent from 2001 to 2002, 7.2 percent from 2002 to 2003 and 9.3 percent from 2003 to 2004. Also, the total number of existing condo sales grew 9.7 percent in 2002, 11.3 percent in 2003 and 12.2 percent in 2004; while homes sales rose 5.1 percent in 2002, 9.6 percent, and 9.4 percent in 2004.

Holtz said he knows that the real estate market can be cyclical, and there is always some cause for alarm when prices inflate very rapidly. He cited the example of a $609,000 "pile of dirt" in Florida that ended up selling as a $740,000 real estate deal just 90 days later. That was a deal he worked on with his family. "It's always a worry when you start talking about one-half million dollars like it's nothing," he said. "But we're not talking about a (dot-com) or an Enron or something like that."

Real estate is a tangible thing, he said. "People need to live some place. They need four walls and a roof." So far, the local real estate market continues to thrive, he said. "If you price it right it sells in one day." A first-quarter 2005 report released by Prudential Real Estate Investors, a part of Prudential Financial, though, expresses some serious caution about the condo boom.

"The potential fallout from a meltdown in the condo market is unquestionably one of the biggest risks facing the real estate industry," the report states. "While we believe the excesses are fairly concentrated within a few markets, the effects of a shock would reverberate throughout the industry." The report also states, "As housing prices soar, comparisons between the housing market today and the dot-com bubble during the late '90s tech bull market grow more frequent by the week.

Although condo fever is more of a coastal phenomenon than a national epidemic and is more bubble-like in some markets than others, the warning signs are getting harder to ignore." The report mentions media reports of properties that are sold and resold in a short period of time - in some cases in the same day. "If a condo bubble develops (or already exists) and bursts as interest rates rise, loan delinquencies could increase sharply and liquidity in the debt markets could dry up very quickly, at least until lenders can assess the impact of falling property values."

On the other hand, the report notes that a downturn in the condo market could benefit the apartment rental industry, as condo rentals are typically more expensive than apartment rentals.

Philip Conner, vice president in the Investment Research department of Prudential Real Estate Investors, said, "There are a lot of factors driving the condo market that aren't necessarily symptomatic of a bubble," such as the higher cost of single-family homes and the "urban renaissance" phenomenon of residents moving into denser housing developments in downtown areas.

But some markets, particularly in Florida, have been named as exhibiting some bubble-like characteristics, Conner said. Some warning signs of a condo slowdown are an oversupply in condo inventory and a growing gap between the ownership costs of a condo unit versus the cost of rental housing in a given market area, he added. Michael Gasior, president and founder of American Financial Services, an investment training company, titled his March newsletter "Real Estate is Over." Gasior said that last month he saw an e-mail notice about an East Florida condo that was selling for about $850,000. "I went back through my e-mail box and saw that same condo about 90 days prior and it was $779,000. Now it's $940,000."

The listing price kept escalating even though the property hadn't sold, he said. "When you see speculators enter the residential real estate market that's often a sign of the top. There's no way borrowing money is going to be easier or cheaper than it's been," he added, and condos may feel the brunt of a market slide. Gasior noted in his newsletter that if the 30-year fixed interest rate rises about 8 percent, "the market will need to give back nearly all the gains enjoyed between 1999 and 2005 in order to stabilize the marketplace.

"The decline that would result would be more severe than the one experienced in the Northeast and Southern California between 1989 and 1994 when homes depreciated between 20 percent to 25 percent in those markets and condo prices dropped between 40 percent and 60 percent. No region of the U.S. would be immune although each area could look to 1999 market values for an idea where their respective bottom might be."

To capitalize on the frenzy for pre-construction condos in Florida, Realtor Steve Dalia of Exit Team Realty in Coral Springs, Fla., launched a Web site this year, PreConstructionProfits.com. Dalia said some condo markets in Florida "seem to be absolutely on fire" in terms of buyer demand, and most of the visitors to his Web site are from outside the area.

On the other side of the country, Mike Machado, a Realtor for Pacific Union GMAC Real Estate in San Francisco, is selling a one-bedroom, one-bathroom condo unit in a high-rise development for $689,000. "Since it's getting really pricey I don't see a lot of first-time buyers," said Machado.

He does see Baby Boomers, retirees and a growing number of investors shopping for condos these days. He said San Francisco real estate has been a good long-term investment, but "if you're thinking about flipping this thing in a month and making $100,000 on it then forget about it." He has seen some sellers in the San Francisco market are taking the money and running for other parts of the state or country. Machado, like many other real estate professionals, has played the real estate market himself, buying and flipping properties for a profit.

Richard Shrake, who left California to sell luxury condos and other property in Las Vegas, said, "A lot of purchases are made by brokers. I've bought myself in this market." He said that the real estate frenzy in Las Vegas, which has sent property values soaring and seeded several high-rise condo projects, could be headed for a glut within the next few years.

Investors can protect themselves, he said, by doing their homework. But he is new to this real estate business. "I haven't been in there that long. I don't know where this is going." Machado said that as with other cycles, it may be too late when real estate investors and speculators realize the market is turning - people may not realize what's happening "until we all get burned." He added, "It's just like the stock market in the late 1990s. Now, we're all in real estate. Real estate's the new stock market. Which we all know can't last forever."

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This story appeared on Page T25 of The Standard-Times on July 2, 2005.