These 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.