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Miami Blues, Again?: “Stearns’ predictions for the city’s ‘preconstruction’ condo market have gone from bad to worse to, as of yesterday, apocalyptic”
Real estate people never seem to learn. Especially it seems in Miami.
Didn’t we JUST do this a few years ago?
In the last real estate bust Miami was a bellwether. I watched the market closely along with California and New York in those years. This all seems very very familiar. And it should be noted also that auto loan default rates (generally) are rising.
What do you think happens if rates finally tick up solidly?
Once again Mises’s genius shines through.
(From The Miami New Times)
Stearns includes a gulp-inducing chart in his report, which shows condo sales have slumped like a black-diamond ski slope, right as inventory has hit an all-time high:
Stearns writes that from 2012 to 2015, new condo buildings typically sold out within months of completion. Now buildings are sitting on the market for months or years with empty units. The Crimson Miami in Edgewater, for example, is still 34 percent empty despite the fact that construction ended in December 2015. Rise at Brickell City Centre, part of a billion-dollar project that city officials hope will bring a “huge infusion of value” to the area’s tax coffers, is still 54 percent empty. Construction was completed there in September 2016.
http://www.againstcronycapitalism.org/
Source: http://www.againstcronycapitalism.org/2017/04/miami-blues-again-stearns-predictions-for-the-citys-preconstruction-condo-market-have-gone-from-bad-to-worse-to-as-of-yesterday-apocalyptic/
