Chitownproperty

Just as day-traders artificially drove up the prices of tech stocks during the internet boom, condo speculators have fueled the real estate boom of the past few years, and are now facing losses as they try to bail out:

Over the last few years, real estate speculators looking to make a quick gain also snapped up preconstruction condos in Chicago, Miami and San Diego. With prices rising by more than 20 percent a year, short-term buyers figured that by the time the condos were ready to occupy, they could sell them without ever moving in, clearing thousands of dollars in profits.

But as more speculators look to cash out in recently hot condo markets around the country, some economists say they could put even more downward pressure on prices in those buildings where for-sale listings are swelling.

(From The New York Times)