March Pending Home Sales Surge 72% in Miami; Foreigners Account for 30% of Sales Activity
Miami Herald -- "Pending home sales in Miami-Dade and Broward counties continued to rise in March as Realtors said both local and international buyers are being lured by cheap properties and bargain-basement interest rates. In Miami-Dade, the number of people who agreed to purchase a home in March was up 6.4 percent versus February at 9,751 homes and condos. Compared to year-ago levels, the number of pending home sales was up 71.7 percent, the Realtor Association of Greater Miami and the Beaches reported Monday. Combined with home sales that inched higher in February, the data paints a picture of a market on the mend.
The Realtor Association of Greater Miami and the Beaches said about 30 percent of the activity can be attributed to foreign buyers. While Europeans seem to be making most of their purchases along the beaches, Latin American buyers -- particularly Venezuelans and Colombians -- tend to look for single-family homes in gated communities."
MP: A clear example of how markets work - falling home prices eventually bring buyers (both domestic and foreign) back into the market, home sales increase, and real estate markets like Miami recover. The best part is that it happens automatically - no legislation or state intervention required - rather, it's part of the natural market process and "spontaneous order."
6 Comments:
In this weeks Business Week (week of April 12th), Robert Shiller stated that he believes the recent improvement in housing is just due to all of the Government support of this marketplace. Also, because of this, that current pricing of homes are being artificially inflated. That is concerning to me and wanted to get your thoughts on this (concerning because I jumped back into home ownership recently to a house that has come down by 35% from it's top price). I appreciate any comments/thoughts to this.
Miami housing is by no means cheap most people make $35,000 a year and housing prices in a deceant area are around $500,000 for a 3 bed 2 bath and you can rent the same house more than half the price. I think all the people that bought this year will sure wish they waited a few more years...
Over the past year and a half the Fed has bought more than $1 TRILLION worth of mortgage backed securities (MBS), or about 80% of the entire market. That is coming to an end. Once that prop is gone, mortgage rates will rise and housing prices will resume their downward trend.
While I certainly agree that, "falling home prices eventually bring buyers (both domestic and foreign) back into the market", the Fed has done everything in their power to interfere with that "natural market process", prolonging the housing crisis.
The Realtor Association of Greater Miami and the Beaches said about 30 percent of the activity can be attributed to foreign buyers. While Europeans seem to be making most of their purchases along the beaches, Latin American buyers -- particularly Venezuelans and Colombians -- tend to look for single-family homes in gated communities."
...because they don't want to have to deal with commoners - and be treated like absolute royalty. HOA/exclusivist communities are for those who have a Napoleon complex but can't (or already have) buy the government.
look for gated communities where their drug business is out of sight.
From a posting at Zero Hedge: 1.2 Million Households Disappear, Putting Downward Pressure on Home Prices and Rents
Post a Comment
<< Home