Florida Real Estate: Poster Child Of Housing Crash?
I'm in Miami today, shooting a piece for "Business Nation"which won't air until November, but I'll say this now: you want a poster child for the housing crash, its right here in front of me in all its towering glory.
I know a lot of you investor folks out there don't like Florida's fave real estate consultant Jack McCabe because he counts several hedge funds as his clients, but I've been interviewing McCabe for several years now, and while his financial motivations may be a little transparent, his facts are correct. Jack puts inventory supply at about three years. That's right YEARS. Not to mention that everywhere I look there's a crane.
At a condo auction a few weeks ago here (Platinum Condos) about 300 people showed up but only 50 actually bid. The rest were folks from banks, hedge funds, and mortgage lenders. It's like when more "industry" shows up at a Madonna concert than actual fans. They all wanted to watch the bleeding begin and see just how fast it flowed.
Prices are falling fast around here and foreclosures are on the rise. And no matter how bright the sun shines here, at the moment Miami's real estate future, which ties tightly to its economy, looks pretty bleak. I've got plenty more interviews to do here this week, so I'll keep you all posted.
Questions? Comments? RealtyCheck@cnbc.com