Miami is ground zero for the condo market collapse. “Investors” snapped up overpriced condos as developers continued to build way too many more. Now it’s all come crashing down and some banks are now refusing to fund any condo mortgages in Miami.
A buyer can still get a private mortgage. But it’ll be at double the bank rate (ouch) and with 30-50% down. This for a condo in a building where most units are still owned by speculators who are upside down on their purchase, foreclosures are common, and condo dues aren’t being paid. I’m guessing there will be few buyers for condos in buildings with dozens of For Sale signs and a swimming pool turning green with algae.
The Miami condo market is dead until prices fall much further. The ripple effect from this to their economy at large will be considerable.