Monday, December 1, 2008

As Predicted, Miami Condo Market Continues Price Crash

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Price Per Square Foot In Miami
Hey Patrick,

Thought I would send you a chart I made of $ price per square foot paid
in a typical Miami condo development over time. I used public records
because the MLSdoesn't list all sales. My chart starts in 2007
(which isn't even the truepeak). The somewhat unique thing about Miami is the
level of fraud perpetrated here. Note that late sale for $848/sf; this is most
likely fraud. Unfortunately the banks were and are very slow to reform lending
standards. As you probably know, the usual scam involves purchasing a property
and then paying a straw buyer (who likely doesn't speak English) a nominal sum
to take out a NINJA loan to pay whatever you ask.

However, the real question is, what are those people that bought at the left of
the graph going to do when they find out they paid 5 times too much? I'll tell
you what - dump their properties resulting in prices being further pushed down.

MS, M.D.

The above post is an email sent to Patrick@Patrick.Net

1 comment:

Anonymous said...

Have your guy go back and prepare this chart going back to 2003. The ride up is even more ridiculous. The Club at Brickell is an anomaly, though. Those $800/Sq Ft trasnactions were all cash out loans. Fraud-for-profit type things. Throughout late 2005 to 2007, you'll see just as many $400 - $550/sq ft (i.e. foolish, but at least real) transcations as you'll see $700 - $900 (uhm...outright-how-did-this-happen-The-banks-deserve-to-lose-all-their-money-fraud).

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