Florida Real Estate Developer Pulls Project, Cites Housing Slowdown

Talk of a housing slowdown is prominent is St. Lucie, but there’s evidence that Florida home loans and investments are losing momentum across the state.

Here’s some more: Gulf Coast Commercial Corporation is pulling the plug on plans to build multi-million dollar condos at Goodlette-Frank Road and Central Avenue because of the real

“My feeling is that right now everyone needs to proceed with caution,” said Phil McCabe of Gulf Coast Commercial Corporation. McCabe pulled the plug on his project last month, dropping $1.5 million in the process.

It’s a first for McCabe who’s made killing off Southwest Florida’s real estate market for decades. His name is on Fifth Avenue above buildings he owns.

“One-year-ago, I characterized it as a feeding frenzy, when there are too many buyers, not enough sellers. Today it’s just the opposite the accumulation of inventory is growing,” said McCabe.

McCabe says the market is flooding. The number of properties hitting the market is increasing, but the number of sales is decreasing. An affordable Florida home loan is harder and harder to find. The greater difference between these two numbers means greater the risk for the investor.

So, if this is the beginning, where is the end?

“Naples is a very deep, very liquid, very wealthy market. And in Naples we tend to come out of this a little faster than they do nationally. And I see in Naples a two year period of correction,” said McCabe.

As hurricane season approaches, snowbirds may fly back north. This would lead to more price cutting as sellers hope to please those seeking a Florida home loan.