Some of Miami’s biggest condo projects have been cancelled. Among them are the Onyx 2, Ice, and possibly sections of the $1 billion-plus Midtown Miami.
Should we be surprised?
After all, there was so much flipping going on down there that estimates were up to 80 percent of sales of some condo projects went to speculators. Those were buyers who had no intention of actually moving in or renting out.
Lewis Goodkin, a Miami economist and [tag-tec]real estate[/tag-tec] analyst, says it wasn’t reality realty. Or in other words, it was fake real estate.
I guess what he was getting at is that Miami, once one of the most spectacular speculative [tag-self]markets[/tag-self] in the country, was more Zirconium than diamond.
But how could the most brazen of flippers have passed up its temptations?
When condos doubled and even tripled in value during a few short years it could certainly get everyone’s attention. Even the most staid and conservative amongst us had to take an extra look.
But do the falling prices as well as an iced Ice and axed Onyx mean Miami is doomed?
It’s still a very good market. It’s just different. Or if we really want to be honest, it’s now more down- to- earth. Which is the way real estate really should be anyway.
However, Miami still has a lot going for it; primarily fresh money from abroad.
Reports are 20 percent of buyers are Europeans spending very strong euros and 13 percent are South Americans.
What’s my point?
It’s more of a sermon.
Unless you have the stomach for it, stay out of [tag-ice]pre-construction[/tag-ice]. It’s not for the faint hearted.