A little background history...
I was born in NYC. I moved to the Suburbs of Detroit Michigan around the age of 6 and grew up there. When I was 21 years old or so during the dot com boom of 1999/2000 I moved to Miami with two friends of mine.
We lived in a suburban area of southern Miami called Kendall, and then moved to high rise apartment on South Beach.
What I found so shocking when I lived down there is that real estate was actually CHEAPER IN MIAMI THAN IT WAS IN DETROIT at the time!
Yes, let me repeat that, in 1999/2000 it was cheaper to own a condo or house per square foot in Miami then it was in the suburbs of Detroit.
To give you an Idea, I remember 1 bedroom/1 bath condos in Miami selling for about 79K-129K and 3-4 bedroom, 2.5 bath upper-middle class houses selling for around 174K-250K
Basically real estate in Miami was selling for 100 dollars a square foot in 1999.
What I am about to show you will truly shock and disturb you...
The picture at the top of this article is a 2 bedroom, 1.5 bath townhouse in a middle class suburb of Miami close to where I lived in 1999.
You can check out the full listing here
The guy is asking $210,000 for 970 sq feet of townhouse. That is basically 217 dollars a square foot. What really takes the full obscenity of the miami real estate market into full context is when you look at the zillow listing for this condo. Enjoy
IN 1999 this townhouse sold for 88,000 dollars!!!!!!!!!! The median price home in the area was 250,000 dollars.
At the peak of the real estate market in 2006 this townhouse would have sold for 250,000 dollars and the median price home in the area was an astonishing 820,000 dollars.
HOUSE Prices in Miami FRIGGING TRIPLED, a 300% GAIN, in between 2001 and 2006!!!!
This is the icing on the cake for me...
Recent sale and tax
- Sold 02/26/2002:
The reality is he is in denial, and the price of this unit will fall from the 217 per sq. foot he has it listed at all the way down to the 100 per sq. foot it was 5 years ago.
The entire city of Miami is in denial, and the crash that is about to occur is of epic proportions. He could probably sell his house right now for 180K and get out with a healthy profit, however, he will be greedy and chase the price all the way down to what he paid and probably even lower to what it was worth in 1999.
My prediction...If the market is allowed to correct itself naturally, THIS HOUSE WILL BE WORTH only $97,000 in 2 years or 100 dollars per sq foot.
A WARNING TO THE MORONS WHO BELIEVE PRICES CANNOT FALL THIS DRASTICALLY!
IF PRICES GO UP 300% OVER 5 YEARS! THEY CAN GO DOWN 300% OVER THE NEXT 5 YEARS!
IT ALL ABOUT PRICE PER SQ. FOOT AND IT WILL HAPPEN!
IT HATH BEEN FORETOLD!!!