A Guide to Miami Real Estate and Living:

A real estate bubble exists when prices of properties in a particular market increase rapidly and are disconnected from their normal intrinsic values. The last real estate bubble that popped was in 2007/2008, leading to a decade of recovery. Contributing factors to a “bubble” include lots of speculative buying, predatory lending and unrealistic expectations of short-term price increases. Is this where we’re at?

Short answer: no, not exactly. But if you’re asking this question, it’s probably because you know something is definitely wrong with the real estate market. Or, you’re an investor itching to find good “deals” in a market where there aren’t many to find and stiff competition. While there are plenty of cash investors looking for a good flipping opportunity, they’re all competing for the same in a very limited supply!

Most experts agree there is a sustained overvaluation in most housing markets especially in Miami, relative to the health of the overall economy. Supply is low, mortgage rates are high, and not many people can afford to buy even the few remaining affordable homes when they come on the market. An entire generation of young people are realizing they may not ever be able to afford to own their own home, once an attainable part of the American dream. Lots of them are wishing for another crash in the hopes it will make housing affordable again. But is that what would happen with a market crash?