What Real Estate Bubble?

I dont think there has really been a real estate bubble, at least not in Miami. Granted, the number of homes on Miami Beach that are on the market for sale, have increased dramatically in the past few months, but prices have yet to come down. One home on a 10,500 sq. ft lot, recently built, closed for $7 million. This is in an area where waterfront luxury properties often sell for half that price. I do have to say that the market has opened up and that there are some amazing homes on the market these days.

Hi Alexshay,

The increasing length of time on the market and the increase in inventory are two of the first signs that the bubble is about to burst. Next, you will see a decrease in pricing as seller’s become more anxious and then desperate to sell. Those who will become anxious to desperate are the ones who refinanced to the gills on low starting interest, adjustable rate loans which will now begin to sky rocket, coupled with the home equity line of credit they took out to pay for their summer and winter trips and bobbles.

The bubble has been building for some time now and the bursting of it has already begun. Now is the time to watch the other economic indicators in the market place so we know when the bottom arrives and those of us with cash can then buy when there’s blood in the streets.