Miami-Dade Real Estate Trends
Miami-Dade CountyOverview / Single Family Market / Condominium Market / New Timeshare Market
OverviewThe financial panic which erupted in September with the collapse of Lehman Brothers caused housing markets to weaken again in November across Florida. However, market activity still remains above the low point plumbed earlier in 2008. Given the tumult in financial markets, the relative resilience is somewhat comforting. Furthermore, although foreclosures and distressed sales continue to weigh down prices, the closing prices are beginning to stabilize at these new lows. With the rates for conforming mortgages now below 5% pending sales activity has soared. All of this suggests that we are at or near the new bottom for this cycle. Figure 1 illustrates these trends using data from Dade County. As noted above, very low interest rates are boosting the volume of transactions. Foreclosure volume will peak in the first quarter of 2009. This combination of forces will allow prices to stabilize. Closing volumes will continue to improve slowly, but a full recovery will be delayed until the middle of 2010 at the earliest. It will take time for housing markets to recover sufficiently to support stronger sales and the ability of people who wish to move to Florida to sell their homes and to move. Furthermore, the sharp drop in stock prices and the erosion in home values will limit the recovery. Some who would wish to move may no longer be able to afford to do so. Thus, the recovery trajectory in 2010 will be modest by historical standards. | Figure 1. Existing Single-Family Homes
Closed Data Through October 2008 |  |
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