RSS Blog FeedMiami Housing Prices Should Drop by 40 Percent to Meet Affordable Goal
Posted at 9:48 PM, Jul. 16, 2007
(Cross-posted at Florida Workforce Housing Network).MIAMI, Fla. --- Average housing prices in Miami need to drop by 40 percent if Miami is to restore its historic income-to-housing costs ratio, according to Irvine, Calif.-based John Burns Real Estate Consulting.
Miami's Local 10 TV reported the story Friday:
But despite recent record-breaking foreclosure months and an abundance of luxury high-rise condos being built, real estate prices in South Florida continue to hold relatively steady.
Buyers know that sooner or later prices will have to go down, so they're biding their time. Sellers think that sooner or later prices will start to inch back up. Is this what they call a Florida standoff? Who's going to blink first? And who cares?
Financial analysts expect that to change in the coming months, when thousands of adjustable-rate mortgages come due -- forcing financially strapped sellers and "flippers" to ditch the property or risk foreclosure.But even if prices fall, it won't be enough to make a dent in South Florida's affordable housing shortage.
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