Miami Condo Inventory Hangs Over Developers
Miami Today reports on a panel discussion that touched on the overbuilt condo market. "'We are having a recession with certain developers right now,' Mr. Cannon said, 'because they're out of business.'"
"11,000-plus unsold units sat on the market at the end of last year. Meanwhile, more than 72,000 housing units are in the pipeline for the City of Miami, and tens of thousands are planned elsewhere in the county."
"The Four Seasons' 186 units, on the market for two years, were once the city's most costly. Dr. Moreno said that of the 46 sold so far, owners of only two had secured homestead exemptions, available only for primary residences, and only three had voters registered there. Developers reportedly just refinanced more than 100 unsold units. Two-bedroom units up for resale start at $1.1 million." How would you like to refi 100 of those?
Miami Commissioner Johnny Winton has an interesting take. "But will a bust follow the boom, as has happened here over and over? 'You can't use historical data to predict the future because we are in uncharted territory. Build 'em,' was Mr. Winton's sage advice. 'If they fail, we're going to end up with affordable housing.'"