Wednesday December 26, 2007
Housing prices are tanking faster in Miami then in any of the other 20 major metropolitan areas in the US: down 12.4% over the last year (vs. the 6.7% national average). The factors feeding the decline are scheduled to continue for 12 to 15 more months, so look for a bottom around the summer of 2009. (And don’t buy a home today unless you know what you’re doing, otherwise you’re almost guaranteed that it’ll be worth less in 6 months then what you paid for it.)
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So in the midst of what is anticipated to be a lengthy real estate bust the government is going to borrow/spend billions. Services are being drastically cut and the idea is to cut revenues back more.
I get it, we want to assure our place as the nationally basket-case of poverty, dysfunction and perennial mismanagement leading to bankruptcy.
Eventually the state and the feds will just step in run even more of our local government, partially bail us out and we can continue the same cycle- just worse off from where we were.
And the crooked pols, the LBA types and those with a “Panama City fetish” (flashy skyscrapers amidst Third World poverty) will be happy.
What a joke.
Banking and Finance industry saw this coming years ago. Miami had one of the highest closing cost rates in the country. Banks wanted their money upfront before knowingly passing off bad loans to 3rd party mortgage companies.
There is a reason why the FBI is conducting a widespread investigation into Mortgage Fraud and time will prove Miami to be a key player in it.