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Old 06-16-2022, 04:50 PM
 
94 posts, read 105,243 times
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So I guess this means prices are not ready to cool down anytime soon Do you think any of chance of that happening within the next 1-3 years?
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Old 06-20-2022, 07:01 AM
 
Location: Coral Gables / Bonita Springs
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Quote:
Originally Posted by starlitwanderer View Post
So I guess this means prices are not ready to cool down anytime soon Do you think any of chance of that happening within the next 1-3 years?
outside of a full blow recession or catastrophe , I just don't see it. Miami is still much cheaper than its counter parts up North since they all bounced back rapidly. Prices aren't unsustainable yet in the area and its still a very desirable place to live. Palm Beach is actually in the 'overpriced' zone right now due to the increased prices but wage & job growth lacking. Will be interesting to see how this all plays out in the coming years. We thought end of 2021 was peak but it was really a few months ago. 6% interest rates will hurt a lot of buyers, that's for sure. Perhaps a 7 or an 8% rate will result in decent price drops??
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Old 06-20-2022, 07:34 AM
 
1,951 posts, read 3,331,709 times
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Quote:
Originally Posted by starlitwanderer View Post
So I guess this means prices are not ready to cool down anytime soon Do you think any of chance of that happening within the next 1-3 years?
I expect prices to pull back "slightly" as the recession nationally sets in. With that said, I don't see a large correction for Miami as there just is not enough inventory to satisfy demand here in the US and coming from abroad. Also, unlike cycles past the buyers here have largely not been speculators and are not highly leveraged. Waiting for a Miami correction of 30% likely not happening IMO.
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Old 06-20-2022, 08:01 AM
 
Location: Miami (prev. NY, Atlanta, SF, OC and San Diego)
7,416 posts, read 6,581,638 times
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I hate to bring this up but FAU and FIU released a study on the most overvalued real estate markets in the country. Miami is not near the top (US or FL) but is nearly 30% overvalued per this study:

https://www.fau.edu/newsdesk/article...using-rankings

Direct links to interactive national and FL charts:

https://business.fau.edu/executive-e...using-top-100/

https://business.fau.edu/executive-e...sing/index.php
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Old 06-20-2022, 08:21 AM
 
Location: Knoxville, TN
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Can you say bubble? I thought you could.
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Old 06-20-2022, 08:57 AM
 
1,951 posts, read 3,331,709 times
Reputation: 1201
Quote:
Originally Posted by elchevere View Post
I hate to bring this up but FAU and FIU released a study on the most overvalued real estate markets in the country. Miami is not near the top (US or FL) but is nearly 30% overvalued per this study:

https://www.fau.edu/newsdesk/article...using-rankings

Direct links to interactive national and FL charts:

https://business.fau.edu/executive-e...using-top-100/

https://business.fau.edu/executive-e...sing/index.php
Overvalued per historic performance and also the article notes that a meaningful correction not happening soon due to the significant supply shortage. Challenging times everywhere.

Last edited by MiamiLIFE; 06-20-2022 at 09:07 AM..
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Old 06-20-2022, 03:24 PM
 
11,177 posts, read 16,039,136 times
Reputation: 29936
Quote:
Originally Posted by elchevere View Post
I hate to bring this up but FAU and FIU released a study on the most overvalued real estate markets in the country. Miami is not near the top (US or FL) but is nearly 30% overvalued per this study:

https://www.fau.edu/newsdesk/article...using-rankings

Direct links to interactive national and FL charts:

https://business.fau.edu/executive-e...using-top-100/

https://business.fau.edu/executive-e...sing/index.php
They release that study every month. I've commented about it before in the Real Estate forum. This is what I wrote:

These "researchers" are getting their numbers from Zillow, lol, and using Zillow's Home Value Index (ZHVI) Methodology. Another LOL. They put out a press release every month talking about how overpriced housing markets are based on this methodology. Here's a quote from their first one in August of last year: "This is the first of what will be monthly reports by Beracha and Johnson. They analyze the nation’s 100 largest metro areas using publicly available data from online real estate portal Zillow or other providers. The data, which extends from January 1996 through the end of last month, includes single-family homes, townhomes, condominiums and co-ops."

https://www.fau.edu/newsdesk/article...s-national.php

Here's a link to their ZHVI study itself: https://business.fau.edu/executive-e...-100/index.php

This is how Zillow itself describes its ZHVI: The innovation that Zillow developed in 2005 was a way of approximating this ideal home price index by leveraging the valuations Zillow creates on all homes (called Zestimates). Instead of actual sale prices on every home, the index is created from estimated sale prices on every home.

https://www.zillow.com/research/zhvi-methodology/

And we all know how accurate Zillow's "Zestimates" are.
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