Miami’s high-end real-estate market has drastically slowed in the past several years, as the Latin American buyers who led a frenzy of postrecession purchases have all but disappeared. South American economies that were roaring in the early years of the decade, including Brazil, Argentina and Venezuela, are now facing severe economic distress, which has devalued their currencies and left purchasers from those countries with far less buying power in the U.S. — wsj.com
Oversupply, the unknown threat of climate change, and shifting immigration patterns are pushing high-end condominium prices downward in Miami, where, The Wall Street Journal reports, sales have fallen off 24 percent from last year.
“There’s just an abundance of inventory,” Alexandra Peters, a Miami real estate agent, told The Wall Street Journal. She added, “there’s so much frustration. It’s hard to move properties.”
Although foreign buyers, long the backbone of Miami's high-end housing economy, are buying in fewer numbers than before, that hasn't stopped developers from building. According to the report, roughly 20,000 new units have been built or planned since the Great Recession.
6 Comments
.... in addition to my other comments... parking for the beach was ridiculously priced, especially since it's the ugliest beach that I have ever seen. Seriously, if I were forced to live in Miami for some reason, and it would require force, there is no way I'd ever visit that beach again
We just spent two nights in Miami and hated it. We will never go back there.
Miami is full of rude people who drive insanely fast without regard to public safety. They push and shove in supermarket checkouts and in restaurant queues.
https://media.giphy.com/media/zNyBPu5hEFpu/giphy.gif
Yes but they are building for one reason. The money they are buildings with does not care about getting paid back. Let me give you an example One street over is building from a developer from Venezuela who claims he owns a car dealership there and all his money comes from there. Well I am sure no one is buying luxury cars there today. Yet, his two year old building is only half sold, of 1.4 million condos, yet he is building more. And just filed more plans with the city for another high rise with 2 million dollar units. The city like bobble headed dogs just nodded yes. So it begs one question. If his car dealership is in the toilet, his one building is half empty have two years, and he has broken ground on other buildings, and now wants to build a bigger and better high rise, where is he getting this money and what bank--knowing the market has slowed drastically--would lend him money. I think that is fair question, isn't?
@WilliamChurch
Obviously, if anyone from Venezuela is able to get their currency out of there (in those amounts specifically), they are in cahoots with the Venezuelan government. Those tons of gold bricks Maduro stole have to end up somewhere- I say approve all the developoments and grow Miami. It's best not to question where the money for Miami's skyline came from (ahem, the 80's),
Thanks for your comment. We have laws against what you are proposing. We must enforce all laws to ensure a level playing field in this country. I obviously I understand with the current president laws and law and order means nothing to most people but they are the pillar of our society. With dirty money, comes political corruption, which leads to lack supervision of building codes and planning.
When this faux market crashes Miami will have empty buildings in bankruptcy that will collapse overall property values.
Development at all cost leads to disaster but I will agree you are not alone in your views. So I will make you a deal. Please develop Miami but when it all crashes there will be no bank bailouts, federal bailouts, if they are hit will extreme weather there will be no FEMA to save them. If you will agree to that then I say go for it. Build all you want. Let the buyer beware. Matter of fact we should run an ad inviting known criminals to live and operate out of Miami. (oh I forgot that is Miami today.)
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