Any ray of light for housing market (Miami: for sale, real estate market)

[Hopn4miracl]

With the latest news of lowering of interest rates affecting credit cards, refinancing, home equity loans etc, will there be any positive effect on the housing market. I am trying to be positive since I have my condo for sale and it really is a good time for buying - lower interest rates, lots of choice and possibility of lower property taxes. For all the positives that South Florida has I don't feel our housing prices are really that way out of line now. Any comments?

[HGONZ001]

South Florida housing prices ARE way out of line. Miami has nothing to offer. Where can a person earn enough money to pay for a $450,000 condo? Our economy is service and tourism based, that means most most are minimum wage. The cut in interest rates means nothing to Miami's real estate market.

[unixpilot]

Originally Posted by HGONZ001

South Florida housing prices ARE way out of line. Miami has nothing to offer. Where can a person earn enough money to pay for a $450,000 condo? Our economy is service and tourism based, that means most most are minimum wage. The cut in interest rates means nothing to Miami's real estate market.

Finally someone talking sense. The only thing keeping Miami's "artificial economy" going is foreign buyers. But with real estate loses accelerating, even that might start to dry up....and then you've got BIG trouble.

[tallrick]

I doubt that a 0.5% drop in rates will make any difference to an increasingly troubled mortgage market. Scaring off foreign investors would go a long way to improving Miami's liveability. The tax situation will be the breaking point of the real estate market.

[Chelito23]

If the prices were in line there wouldn't be a glut in the housing market and your condo, along with the thousands of thousands of others on the market, would have sold already.

Price accordingly for the market (see what the AVERAGE income is) and then price accordingly. It would sure sell that way. The days of easy money in real estate are over and reality has to set in. Miami is not the only place on the planet with palm trees and a beach, many other locals offer the same, for better prices, and better service. Miami now has a lot of competition with globalization and its affordability is out the window. Good luck.

[rogerbacon]

The next big variable in south Florida's economy will be when Castro dies-- probably sometime in the near future. If a democratic change takes place in Cuba and investors have confidence in the new government they will go there instead of South Florida. When you can buy beachfront property there for 1/100th the price of south Florida, who wouldn't want to go there. It will be the death knell for south Florida. Tourists will also return there and shun south Florida.
If, on the other hand, it looks like another communist regime will take over then there will be a mass exodus of people trying to get to south Florida. The coast guard says they are ready for that and will try and stop the people but I don'tthink they'll be able to get more than a small fraction of them.
Either way, I see it as being terrible for south Florida.

[HGONZ001]

Originally Posted by rogerbacon

The next big variable in south Florida's economy will be when Castro dies-- probably sometime in the near future. If a democratic change takes place in Cuba and investors have confidence in the new government they will go there instead of South Florida. When you can buy beachfront property there for 1/100th the price of south Florida, who wouldn't want to go there. It will be the death knell for south Florida. Tourists will also return there and shun south Florida.
If, on the other hand, it looks like another communist regime will take over then there will be a mass exodus of people trying to get to south Florida. The coast guard says they are ready for that and will try and stop the people but I don'tthink they'll be able to get more than a small fraction of them.
Either way, I see it as being terrible for south Florida.

Once communism is official in Venezuela, a huge influx of Venezuelas will flock South Florida. Then if Castro dies, more Cubans will leave the island to Miami. I am not sure where all these people will find housing or jobs, but I guess we will see more poberty and higher unemployment in So.Fl.

[ivcceo]

Home prices are still way out of whack with income. I am amazed that I am still seeing lots of construction cranes in Miami. I think we are heading for a further fall until folks can afford to live here. A rate cut won't do much as lenders have adjusted their lending practices so buyers will have a harder time to get loans regardless of rates.

[crystalblue]

the city and county need to get involved in the housing sector down there. the price to income ratio is so skewed...