Commissioner Kerdyk is Right
September 15, 2010 Leave a comment
There is plenty to worry about in the prices of houses in Miami-Dade and Coral Gables. Even if we live in Coral Gables, there is little chance that our house prices will coming bounding back or that the city will get in inflow of tax revenues from higher property values. Forget that notion for several years. I think that in these times higher millage rates discourage real estate sales for most buyers.
The slide in U.S. home prices may have another three years to go as sellers add as many as 12 million more properties to the market.
Shadow inventory — the supply of homes in default or foreclosure that may be offered for sale — is preventing prices from bottoming after a 28 percent plunge from 2006, according to analysts from Moody’s Analytics Inc., Fannie Mae, Morgan Stanley and Barclays Plc. Those properties are in addition to houses that are vacant or that may soon be put on the market by owners.