"The reason they call it clickbait is because they know full well that when they lead with a headline saying that Miami is a bubble, that in most people's eyes, that means that a crash is imminent, she said. When you make a bold headline declaring No. 1 bubble in the world,' what are you implying? You're implying that there's going to be a precipitous crash and it's alarmist."
"She said Miami's heavy use of all-cash home sales fundamentally separates it from cities that have seen speculative, debt-driven housing booms. We have an astoundingly high all-cash market and the fact that that is not emphasized in this report is beyond belief, she said. This market has been buoyed up by cash. Miami's condo market is over 70% all cash. If it's past $2,000 a square foot both the single-family and the condo market over 80% all cash."
Record-high price-to-rent ratios, slowing price growth, and mounting affordability concerns characterize the market. A cooling of home prices is expected, but a precipitous near-term drop is not projected. Industry leaders argue that bubble labels overlook Miami's unusually high share of all-cash transactions, robust job growth, and domestic wealth migration that support demand. Cash-heavy dynamics are most pronounced in the condo market, with over 70% all-cash sales and over 80% for properties above $2,000 per square foot, insulating values from debt-driven speculative collapses. Officials distinguish current dynamics from the 2008 debt-overleverage crash scenario.
Read at www.housingwire.com
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