Wednesday May 31, 2006

Still think it's an adjustment?

sunset

I’ve said it before, and I’ll say it again: we’re in for some affordable housing in the MIA. The Herald would have us believe that housing prices are basically stable. Robert is more thoughtful, but basically sings the same song: that housing costs may not continue to rise as they have, but that we’re looking, at worst, at a correction.

Ladies and gentlemen, feast your eyes on the actual numbers. We have inventory increasing. We have prices falling. We have the rate at which they’re falling increasing. What more do you want? How about Miami’s cost of living, now 15.5% over the national average? How about the insurance rates, which as any homeowner knows have shot up over the last 18 months, but are due for more major increases? How about “Forbes calling Miami one of the country’s foreclosure hotspots? And don’t get me started on the condo glut. When those 2-bedroom suites on Biscayne are going for $175K, you think it’s not going to spill over onto houses? Break me a give. Read this for a taste of what’s in our immediate future.

Update: John brings up a good point; this discussion is slightly impoverished without a reference to Steve’s analysis of the relationship between housing costs and wages.

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  1. Tere    Wed May 31, 10:55 AM #  

    Alesh, from your lips to G-d’s ears. I pray every single day that prices drop to realistic (affordable) levels.

    The government and developers want to make Miami into this high roller, high luxury, we’re-the-next-New-York city, thoroughly ignoring the fact that the big majority of us are working folks who need their crappy paychecks just to make basic ends meet.

    If the big change doesn’t occur, we’re going to have to leave MIA by the end of the year. We can’t continue renting, we can’t afford the current market, and this is really ruining our quality of life.



  2. oldswish    Wed May 31, 12:40 PM #  

    Right on the head. I have 2 really good examples in my neighborhood, 8901 and 8915 NE 9 avenue. Both houses were bought last year for 350K. that guy changed the locks and turned them for 425K and 477K respectively. The new owners did really bad renovations (barrell tile roofs on a mid-century modern house? marble over terrazo?get-a-clue!) Anyway, they are trying to sell them now for 599K, down from the original of 635K and 699K down from 789K. Meanwhile the houses sit empty and adding to the Hummer driving owners’ carbon footprint. You got to love idiots who think the rest of the world doesn’t know what is going on. I hope their children like the fresh taste of clay tiles, because that is what they will be eating, unless the sellers get realistic and price the homes in the low 400s where they belong. Take your losses and get out. Buyers are in a foul mood.



  3. John    Wed May 31, 08:39 PM #  

    Thanks for writing that. I can scratch that off my list for article topics. I wish you had referenced one more thing again that you did in earlier posts on the subject- Miami housing costs are not very high at all comparatively speaking. Income levels are so damn LOW.



  4. White Dade    Fri Jun 2, 02:46 PM #  

    I love seeing numbers like this. Nothing gives me more glee than all thos guys that were talking about how much they were making in real estate and financing $80,000 cars being flat broke in about two years. Call it the poor man’s revenge.



  5. cb    Mon Jul 3, 01:27 AM #  

    Where you gonna go?

    New York? You can’t afford that..
    Boston? Can’t afford that either….
    LA? not….
    San Fran? Never…
    HMM see ya in Texas…

    Have Fun, dont forget to write!!

    Stop whining, everyone’s gotta pay.

    Besides have you ever shoveled snow for 2 hours just to get to work.

    How much for that studio on the beach?

    I’ll take it…