Wednesday May 31, 2006
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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