Goldman Sachs Forecasts Another 33% Drop in Miami Prices
The New York Times' David Leonhardt takes a look at the real estate status quo in several U.S. markets and proclaims the end is not near. The first sign of weakness comes in the form of a Washington property auction where "low-ball prices continued to win the bidding. At one point, the auctioneer, Wayne Wheat, interrupted his sing-song auction call to cheerfully ask, “Where are my investors?” His colleague then attends a larger property auction in Miami and walks away with a similar take. "The homes there also sold for just a fraction of what they would have even a year ago. The rate of decline in Miami hasn’t even slowed noticeably in recent months." And looking ahead, analysts believe Miami housing prices will continue their rapid decline throughout 2009; Goldman Sachs is forecasting an additional 33% decline this year. The problem in markets like Miami is pretty simple, says Leonhardt. Not only is there excess supply, real estate is still just too expensive.
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