Miami Is 'Ground Zero' For The Housing Bubble

The Sun Sentinel reports on the developing condo wipe-out. "If you're buying a single-family home or condominium, plan to live in it long term because the days of making fast cash in real estate are over, industry experts said Friday. 'Everybody can't be Donald Trump,' said Henry Fishkind, an Orlando economist. 'I'd be cautious right now.'" "Fishkind and other analysts agree that the housing sector has peaked and predicted problems for the condominium markets in West Palm Beach and Miami, where thousands of units are expected in the next few years. In Miami-Dade, more than 71,500 units are built or planned, Miami real estate consultant Jack Winston said, adding that only 9,100 units were completed countywide in the past 10 years." "Some small banks will be in trouble because they've loaned money to condo developers who won't follow through on building plans as the market softens, analysts said Friday. They think falling land prices are inevitable during the next year. Already, agents are reporting price reductions in some condo resales." "'Miami is ground zero for the housing bubble,' Winston said. 'It's going to be severe in Miami, and it's going to be problematic in West Palm. We've built too many units compared to the projections for real users.'" "More than 6,000 units are coming to West Palm Beach, mostly in the downtown corridor. But unlike Miami, West Palm can't count on a large contingent of international buyers to scoop up condos, Winston said. Developers point to the growing numbers of young professionals who want to live in downtown condos, Winston said. 'The problem is, while they are an emerging market, they can't afford the product,' he said."