Anybody Home?

Byline: Shannon Behnken

Jan. 27--TAMPA -- Lance Ponton Jr. was a condo developer's dream.

In September 2004, he put down 10 percent deposits on five Harbour Island condominiums before they were even built. Ponton, 27, hoped to sell them for a big profit as soon as the building was finished and his deals closed.

"But when it was done, we found that everyone else in the building was doing the same thing," Ponton said.

He ended up having to make thousands of dollars in mortgage payments for 10 months on all five condos in the ParkCrest Harbour Island. Eventually, he sold four units, pocketing $50,000 to $100,000 on each. With one more unit left to sell, Ponton hopes he can slip out of condo investing before he loses money.

"The market was really good, but it has changed, and it's time to move on to the next hot thing," Ponton said.

As Ponton has learned, rising mortgage interest rates, a swelling inventory of new condos and growing skepticism among buyers about prospects for fast profits have triggered a slowdown in the condo resale market downtown.

Indeed, real estate investors such as Ponton are finding that the days of selling units, or "flipping" contracts on pre-construction condos within hours or days, are over, especially downtown. It's taking months, or longer, to find buyers, and some sellers are having to lower their asking prices, according to sales data …