Miami Beach Real Estate Hits Number 1 on Worst List – Blames it on Condos

By Jron C. Magcale

Somebody needs to hold me back, I don’t know how it happened but I think Miami Beach Real Estate is taking a really big dip on the bust section of the country’s market. There are reports that Miami Beach has been forecasted to have a stormy weather on its market, in which I totally disagree but they say numbers don’t lie. I like to see someone on our market to step up and show some much needed confidence. Miami Beach is one of the top dogs on the tourism department in the country, while Hawaii is enjoying their stay atop right now as the best beach spot to have a home with. Miami Beach reportedly is on the bottom feeders.

Miami Beach is always a step ahead of the top vacation spot in the country but sadly according to housingpredictor.com Florida has 4 cities in its 25 worst real estate markets in 2008, and unfortunately Miami Beach is one of them. Stats don’t lie so I decided to go and check on them and according to Forbes.com. Miami’s median price dropped 5.6% from 2005 to 2006, and HousingPredictor.com predicts it will drop another 15.2% in 2008. A big ouch on my side but it probably has a good explanation. On the said list Miami is number one, which explains that the list has some real serious sources.

Although it shows that Florida has 4 cities in that list, California has 8, should it be a breather for Miami Beach loyalist? It should be. But the reality on this is California’s housing prices has long been priced higher than the rest f the country and that is one credible reason why they are going nowhere but downward, Miami in the other hand has a different problem which is supposed to give them some mercy on the list, but no it doesn’t. The reason why Miami Beach is in that list is most probably, and I am definite on this is that Miami Real Estate depends heavily on Condos, which similar to Fort Lauderdale, Naples and Palm Beach they have a glut of them in their areas.

Although condos are simply known as a cash cow for more than a decade now, it somehow transformed like Optimus Prime into a financial liability now that Miami Beach is suffering on a downward spiral fall. Although the condo market shows nice figures the word “overbuilding” is probably coming on them fast. The condo problem of Miami Beach has been hitting the home builders to step up their game. Because Miami Beach is largely a tourist spot the condo owners can’t help but build more condos of course for them to cash in but right now the housing market in Miami has been on the hurricane end of the market which signs to a large disappointment. 2008 supposed to be a good year for our market but it seems it’s in the opposite direction. Right now it is a big waiting game and until the forecast is positive on our side of the bracket, we might as well just sit back relax and enjoy the ride.

Jron C. Magcale

http://miamirealestatetrends.com/

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