Miami Real Estate Market Contradictions |
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By Diana Olick - 05/11/2007
Forbes recently listed Miami as America 's second most over priced real estate market.
Now CNBC lists Miami as number 4 in its top five metro areas in (property value) appreciation.
CNBC analysis goes on to report:
"But there continue to be puzzling stories in the national mix that appear to defy employment and land supply.
Take, for example, Miami . Florida is leading the housing bust, with existing single-family home sales
in March down 28% statewide from a year ago. Prices statewide are down 4%, but not so in Miami �
While single-family home prices in the city are flat, condo prices are up 18% over last year,
despite the fact that the Miami skyline is still teeming with cranes."
If you read the Forbes list you saw two of its targets on the downside of the CNBC list
( San Diego and D.C.), but Miami , a Forbes target, is on the upside of the CNBC list.
The articles are both looking at property value appreciation in the same
city but drawing two very different conclusions.
The Forbes conclusion is that the prices in the Miami market are too high to sustain further growth.
Forbes formed their conclusion by looking at the median household income of City of Miami residents,
excluding the Greater Miami area and ignoring the city's appeal to national and international buyers. The CNBC report looks at the property value increases as positive and the reality
on the ground as highly active. The conclusion is that Miami 's real estate market, particularly
the condo sector, is defying the odds and continuing to increase in value.
Now CNBC lists Miami as number 4 in its top five metro areas in (property value) appreciation.
CNBC analysis goes on to report:
"But there continue to be puzzling stories in the national mix that appear to defy employment and land supply.
Take, for example, Miami . Florida is leading the housing bust, with existing single-family home sales
in March down 28% statewide from a year ago. Prices statewide are down 4%, but not so in Miami �
While single-family home prices in the city are flat, condo prices are up 18% over last year,
despite the fact that the Miami skyline is still teeming with cranes."
If you read the Forbes list you saw two of its targets on the downside of the CNBC list
( San Diego and D.C.), but Miami , a Forbes target, is on the upside of the CNBC list.
The articles are both looking at property value appreciation in the same
city but drawing two very different conclusions.
The Forbes conclusion is that the prices in the Miami market are too high to sustain further growth.
Forbes formed their conclusion by looking at the median household income of City of Miami residents,
excluding the Greater Miami area and ignoring the city's appeal to national and international buyers. The CNBC report looks at the property value increases as positive and the reality
on the ground as highly active. The conclusion is that Miami 's real estate market, particularly
the condo sector, is defying the odds and continuing to increase in value.
