Its not a housing bubble – its just expensive!
The Miami Real Estate Market is not even near a bubble
This struck me as interesting because back in 2008 when the bubble burst, it was Miami that was the poster child for the economic collapse. Miami was even mentioned and featured in a number of films highlighting the collapse (The Big Short). I read this article with great interest and as I scanned the article for a mention of Miami in the list of Top ten cities in the US with the highest ‘bubble rating’….Spoiler alert. We did not even get a mention!
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At the David Siddons Group we spend so much time studying almost all single family neighborhood and talking to home buyers and sellers to get a feel of where their heads at. Although we have certainly seen a softening on some price fronts (check out our soon to be released 2016 Miami real estate report). We are seeing far more of a stabilizing market than a decreasing market.
So should home owners fear that the value of their homes will collapse or that home buyers should be patiently waiting on the side lines to see prices half before they rush in a vulture a deal? Fortunately or unfortunately (depending on your opinion) you wont see the ‘single family markets’ collapsing, but you will see some sectors correcting down, back to a more balanced level.
Why would it not collapse? In short, because so much has been bought with cash and many people still want to move and live within Miami.
Advice to home buyers and sellers.
We have seen a lot of renovations within Miami in the last few years and buyers are paying top dollar for brand new and well renovated homes. There is a still shortage of these, so if you want one you will have to pay a top level market price (but do not go over our recommended ceiling).
Older homes that need renovations? We have seen some sellers still aiming to achieve a high market price.
My advice to buyers: if you see these homes asking high $ per sqft number (For example $450+ in Coral Gables or Coconut Grove), walk away! You will see these prices come down as sellers wake up to the reality that the market is not going to continue up by 10-15% as it has in recent years. My My advice to sellers: adjust your expectations and be realistic. Otherwise spend some money improving your home, do some light improvements in order to compete against the more polished properties.
Read our other blogs related to this:
- Coconut Grove home owners – has my house reached it’s peak price?
- Coral Gables home owners – has my house reached it’s peak price?
- Pinecrest home owners – has my house reached it’s peak price?
- Miami Beach home owners – has my house reached it’s peak price?