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Housing bubble in Miami?

28 May

CaptureThese days I often experience the frustration behind clients that have been trying to buy a house or a condo for months. The worse is that they have it all; they are ready to buy, they have the cash, they are not picky but it seems these characteristics are not enough any longer. Indeed with so many potential buyers and a limited inventory you basically have to be hunting for a condo! I witnessed buyers that had to buy a condo without even visiting it. Timing is of the essence seems the perfect sentence in this Miami real estate market!  Nowadays it is definitely a sellers’ market.

In Miami Beach and Downtown Miami people are fighting over units, prices are going up and the inventory is very low. Does this scenario sound familiar to you? Because personally it brings back memories about the housing bubble we suffered from. Are we going down that road again?

I’m hearing lots of theories about it and I can understand why some people are worried that a revival of 2007 could happen. But, if I quote experts “there is no bubble today”. Indeed, there is a major difference between now and the market back then. At that time home prices were overvalued when compared to personal incomes and rents.  Prices were overvalued by 39% and today they are undervalued by 7%.

Basically it means that prices increasing are still a rebound from the crisis and not a bubble! So for the moment don’t worry, Miami real estate is doing just great.

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4 Comments

Posted by on May 28, 2013 in News

 

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4 responses to “Housing bubble in Miami?

  1. Jenn

    June 4, 2013 at 11:31 am

    Amazing to think of buyers so set on an area that they are purchasing properties without even seeing them in person! Miami is definitely one of the most in-demand real estate markets in the country and prices are continually gaining. What are your thoughts on the local rental market? I’ve noticed prices still topping off at several thousand a month for a rental in downtown Miami, and people seem to be paying it! Show monthly rental rates to someone from middle America and they wouldn’t even believe it.

    Great blog by the way! 🙂

    Best,
    Jenn
    http://www.goldcoastschools.com

     
    • miamicondoideasblog

      June 13, 2013 at 2:13 pm

      Thank you Jenn,

      Rental rates are great in Miami and vacancy is very low. In a week or two you can find a tenant.
      By the way your school is great, that’s where I got my license 🙂

       
  2. Margherita Aldo

    July 5, 2014 at 7:29 am

    I want to buy a house in Miami because my old house was in low area so i want to change it now. Thank you for sharing this post, it will helpful to me for buy a house in Miami….

     
    • miamicondoideasblog

      July 24, 2014 at 12:15 pm

      Dear Margherita,
      We can help you find a house in Miami. We speak fluently Spanish, Italian and French so if you haven’t found one yet you can contact us at info@condoideas.com. Thanks,

       

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