Q: Will the condo market turn around in 2008?
A: "The condo market is managing through oversupply and tougher credit terms for loans. Still, we expect certain markets to stabilize in 2008. Manhattan remains a very strong market because of its strong economy and robust demand from international buyers due to the weaker U.S. dollar."
? Tal A. Savariego, vice president capital markets, Meridian Capital Group
A:"The condo market will likely only recover after prices of single-family homes and townhomes stabilize because those products, which generally have broader appeal, are now more affordable to those who might have purchased condos in the past."
? Tom Bozzuto, CEO, The Bozzuto Group
A: "2008 will be known as the year of the 'great condo meltdown.' The speculative lending, construction, and sales of condominiums that drove the condo boom will deteriorate in a historic rise in cancellations and walkaways, dark towers, foreclosures, bankruptcies, empty buildings, and increased litigation. The majority of high-rise condo projects across America are scheduled to reach completion in 2008 to 2009. New condo construction in many markets will stop for years as the current crop of projects are completed and slowly absorbed. Look for auctions, vulture bulk sales, and foreclosures to drive prices downward as the year progresses. This may be the darkest year of the correction cycle."
? Jack McCabe, CEO, McCabe Research and Consulting
? Cyndy Salgado, vice president, Development Marketing Group, a division of Koenig & Strey GMAC