Amid all the epic financial bubbles that have emerged in the past few years, real estate has been a bit of an afterthought. Still, the action in hot market trophy properties has been pretty bubbly.
And now the run may be ending. London penthouses are sitting empty due to Brexit uncertainty. Vancouver condos aren’t selling because of recent taxes imposed on foreign buyers. And in the US some formerly red-hot markets are heading south. Consider:
Study Says Miami’s Condo Market Losing Money, Could Be in Bad Shape (Miami New Times) – Real estate is the heart of Miami’s economy. In the past four years, more than 3,000 condo units have been built, and a whopping 11,000 are slated to finish construction by 2018. It might seem an insane proposition to sell 14,000 new luxury condos in six years, and it appears market experts agree. Real-estate analysts have been saying for months that Miami’s condo market is headed for a nosedive, and a study released yesterday suggests the Magic City might already be in that slide. Real-estate expert Andrew Stearns released a study yesterday that suggests, yet again, that demand for luxury condos in Miami could be hitting its breaking point. Though there were more than 700 post-2012 ‘preconstruction’ condos on the market in August, Stearns reported that only eight of them had sold. And all but one lost money on the sale.
This post was published at DollarCollapse on OCTOBER 5, 2016.
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