Miami Housing Market Report

Recently, CBS4 came out with a report, which stated that according to Forbes Magazine, Miami is #1 on the list of the top ten worst selling housing markets in the country. The CBS4 report, goes on to say that during the peak real estate market of 2004, prices were climbing through the ceiling, with increases in home values of about $1000 a week. These days the story is quite the opposite, however, with home prices falling a whopping $1250 a week, so far this year.

Further declines in home prices are expected in Miami. The overbuilding by greedy developers with the blessings of some politicians a few years ago has a lot to do with it, as there is presently a large oversupply of condominium units in the Miami area. Many new buildings are still under construction, and the units in those condo buildings will also have to be sold. That spells high supply, low demand, which translates into prices continuing to fall, at least in the condo market.

The Florida Association of Realtors and Jack McCabe of McCabe Research recently reported that the over supply of condos and town homes in Dade County is represented by more than 24,000 condo units for sale in the Miami area. According to the report, that represents a five-year supply.