Is Miami-Dade Housing Sale Boom All Hype?
Educated and informed consumers know that the mixed-message bag of information on nutrition is to be taken with ... a grain of salt (pun intended). Seems like each day brings a new finding about what is and isn't good for us. Well, move over nutrition and make room for Miami-Dade's housing market where the constant flow of news about whether it's on the road to recovery or not is frankly confusing and headache-inducing.
In a recent Miami Herald article the headline read "Home-Sale surge a sign of recovery," with a subhead indicating that sales rose 17 percent in March while prices continued on a downward spiral.
It's obvious sales will spike when prices are cheaper; after all, as consumers we know to buy when things are on sale, right? Interesting, too, that the supposed "recovery" comes on the cusp of a looming deadline for a federal tax credit. See, if first-time buyers close by June 30 they're eligible for an $8,000 credit, and repeat buyers who meet the deadline can earn $6,500. That's a nice chunk of change.
A realtor at Coldwell Banker was quoted in the article saying he's experiencing a last-minute rush of folks trying to capitalize on this. Buyers, he says, are hunting in Miami for a real estate contract prior to month's end, specifically to meet the deadline. Coldwell's offering an additional incentive to them by asking commitment from sellers to pay $8,000 toward a buyers' closing costs after May 1.
With these enticements it's obvious that the much touted "recovery" is certainly tied to these tricks of the real estate trade.
Realtors say that these types of deals will eventually lead to home price stabilization and a true economic recovery. But leveling the playing field will take years, and how long can real estate firms afford to continue dangling such sweet carrots in the face of their customers?
See homes for sale in Miami, Fla. at AOL Real Estate.