For the ones that do get completed, for the buyers who don't walk away from their down payments and do close, what % drop in value do you think condos in Miami will see 12 months from now?
I'm guessing 20%
That's why I think most folks will just walk away if they haven't closed. 5% is nothing compared to 20%.
Market has peaked, causing problems for condo markets in Miami and West Palm, experts say.
If you're buying a single-family home or condominium, plan to live in it long term because the days of making fast cash in real estate are over, industry experts said Friday
In Miami-Dade, more than 71,500 units are built or planned, Miami real estate consultant Jack Winston said, adding that only 9,100 units were completed countywide in the past 10 years. He did not release figures for Broward or Palm Beach counties.
Some small banks will be in trouble because they've loaned money to condo developers who won't follow through on building plans as the market softens, analysts said Friday. They think falling land prices are inevitable during the next year.
Likewise, real estate speculators will take hits if supply continues to outpace demand, hurting their ability to resell or rent units. Already, agents are reporting price reductions in some condo resales. "Miami is ground zero for the housing bubble," Winston said. "It's going to be severe in Miami, and it's going to be problematic in West Palm. We've built too many units compared to the projections for real users."
January 29, 2006
Posted by blogger at 1/29/2006