Miami Resales Up, but How Desirable Are the Homes?

Miami home resales are hot and have been driving the market upward for about the last year and a half. But the condos and houses that are the force behind the upswing aren't the most desirable of the lot. There are several factors affecting the recent drop in prices and boom in resales which often are not detailed in what's being reported.

A recent MDA DataQuick report claimed that home sales in Miami were up 7.1 percent from May to June, without presenting many specifics about the source of the surge.

Miami Realtor Jesus Menendez with Coldwell Banker shed some light on the subject, giving some specifics on what specifically is affecting these jumps in resales.

"It's important to remember that these numbers are affected by both short sales and REO (real estate owned), which are corporate or bank-owned properties -- basically, homes that banks have had to take back into their portfolio and resell," Menendez told HousingWatch. "What's bringing the prices down is that, due to the lack of inventory, what's left is the scrap that no one wants and these are going for nothing. Investors are going to town on these."