I was not blogging as I’ve spent a week in Miami. It was totally amazing experience! The water was warm, I was swimming in the ocean a lot, visited a pack at attractions, Everglades.
But what’s most interesting for my readers is my housing bubble experience.
All the 10-miles strip of golden coast from Miami to North Miami Beach is long chain of amazing, beautiful multi-story buildings. Only few of them are actually hotels or somehow destined for tourist. Most of them are just regular condominiums, built for people who live there. Or don’t live. All this beauty is gone at nite, as in the dark those condos are turned into skeletons, with no almost no lights and no people.
The building I was staying at had only 35% of condos sold. Not even all floors are populated yet. The underground parking is half empty. Yet it’s not for short rent, as the rules are very restrictive on how and how long the owners can rent their apartments. The vacancy rate at gold coast is troublesome.
Naturally, I was expecting a lot of real-estate activity in the area. Open houses, advertizements, those stupid yellow ballones. Not at all. It seems like there is no buyer’s traffic at all that could feed at least RE agent’s hopes. They left the market, like the rats leave the ship.
The only RE ads I saw are very strange hand-written notes “we buy houses as-is for cash”. I’m not sure what kind of market it is.
My conclusion is that there are tens of billions of dollars buried in the ground in Miami, all dead money. Sooner or later they will show-up on some balance sheets, then we shall see.