http://abcnews.go.com/Nightline/Business/story?id=2882620&page=1
This article talks about the booming condo market of Miami, FL and how very recently has turned into a stalemate. 25,000 condos are being completed in just the next 18 months, but no new projects are being created because of the overabundance of condos already in Miami. The over supply and the factors of increasing Hurricane Insurance has tured the real estate market in Miami into a stalemate. This all makes perfectly sense, because of the boom in the condo market two years ago, everyone was building condos but because of that, an overabundance of them were built. That plus the increasing Hurricane insurance prices and other facotors makes the demand for these condos drop dramatically creating a stalemate.
3 comments:
Interesting article!
The housing market has so many cycles - sometimes it seems like they come and go more quickly than seasons. Excellent analysis - increase in S drives P down - but the other factors keep P high...weird.
It was interesting to see how supply and demand were affected in this case, and I learned more about the effects of natural disasters on a market (i.e. hurricane).
Yeah, I enjoyed the article. What is happening in Miami is crazy. I went there over christmas break and it made me think about the housing market there. The city is really full of cranes and builing sites.It seems that they got overexcited about the huge demand for condos. A ton of competitors will surely cause the price of condos down. Good for us.
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