Thursday September 27, 2007
Platinum Condominium has had some trouble selling units, so they decided to try selling 20 units off at a live auction. The results? Well, as Lucas put it at Miami Condo Investments, “the auction was a disappointing failure and Miami condo developers should soon be seeing brown stains appear in their underpants.”
Only 9 units were auctioned, and most came in hundreds of thousands less then what identical units have recently closed for. Luis has more analysis (plus videos of the event), and leaves open the question of whether this is the bottom. Well, folks, it’s not. Reports on the sub-prime mortgage meltdown have that fiasco continuing for about another year, so it’ll be feeding coal to this fire well into next year.
I still say this is great for Miami. The housing crash is nation-wide, and steps are being taken to fix the situation, but because it’s worst in Miami, those steps will do little more then soften the landing a tad. Consider the internet bubble of the 1990’s: one of the results was that insane amounts of fiber optic cable were laid down, much more then it made financial sense to do. The result is cheap broadband for everyone (and a hosing for greedy companies). The result here? Well, a hosing for greedy developers, but cheap condos for everybody! (With fancy lofts and primo stainless-steel appliances, natch.) Workforce housing? Give me a few more months, and I’ll have all the workforce housing you need on tap for ya.comments powered by Disqus