Hit on image to enlarge it. From the Wall Street Journal. Looks like Miami is in for a rough ride. Thank you WOOF for sending this. From the related article:
"The biggest gluts are in Florida. In the Miami-Fort Lauderdale area, the supply of single-family homes and condominiums is enough to last 34 months at the average sales rate of the past year. That months-supply figure is about 21 in Orlando, 18 in Tampa and Las Vegas, 17 in Detroit and 14 in Phoenix. A six-month inventory is generally considered a rough balance between supply and demand.
For condos alone in Miami-Dade County, the supply would last 45 months at the current sales rate.
Prices are coming down fast. Real-estate data company Zillow.com estimates that the median value for all homes in the 12 months ended March 31 fell 25% in the Las Vegas metro area, 19% in Miami and Orlando, and 16% in Phoenix."
8 comments:
Not a rough ride but a huge tumble!
Get rid of the county commissioners who allowed this inventory to explode. Everyone who was convinced that they were right to allow Sergio Pino and his gang to fill west dade with tract housing, should raise their hands.
Joe Martinez should be the first to go.
According to the late loan figures, Miami leaves the whole country in the dust. With an almost 3 year inventory, prices will fall even more than experts predict. Not a pretty picture.
Add Sorenson to the list. She just approved development of high-rise condos in the Princeton area in South Dade. Her very liberal-socialist ideas are destroying our otherwise peaceful community by cramming people into the area w/o the proper infrastructure.
Sorenson is light years ahead of most of the other commissioners. Yes, she won't always do the right thing for everyone...but she is the heart and soul of the commission. I respect few and admire less but she is one CommissionerI have to admit: I admire and respect.
The issue is not excess INVENTORY, the issue is the PRICE LEVEL of housing. The price level was inflated due to lax lending standards and excessively lax monetary policy. Inventory is just a symptom of an artificially high price level. Lower prices 25% and the inventory will dissappear. If you stop new development to somehow try and preserve price level, you do 2 bad things: 1/ government policy will overtly favour owners over renters for no obvious reason and 2/ you will freeze the market as sellers will not realize the price level of too high.
I wonder what fraction of the Miami number is condos and what fraction is houses?
For condos alone in Miami-Dade County, the supply would last 45 months at the current sales rate according to the Wall Street Journal accompanying article.
Post a Comment