Some Rising Prices Don’t Make a Recovery

By Mike Colpitts

Rising home and condominium prices in isolated markets scattered across the U.S. rarely develop into a sudden real estate recovery, but demonstrate the differences of local housing markets.

For the first time in years the average prices of homes and condos in Miami moved higher in July, showing that even in downtrodden Miami, once the proverbial epicenter of the real estate crash prices can get so low that somebody comes out to buy.

In Miami’s case, most of the market’s strength is from foreign buyers, which won’t help the housing market much in say Peoria, Illinois once a vast test market for home products in the 1960’s.

The power behind home sales in a place like Miami is the resort market, its unique ability to attract tourists from all over the World with the Key Biscayne Waterfront, thousands of restaurants serving everything from Cuban food to Mojitos at the corner bar, a diversified cultural experience and plenty of hard bodies on the beach.

For some reason you don’t see girls in skimpy bikinis in the corn fields outside of Peoria

This article is a perfect illustration of how you need to always study local trends and numbers because there are micro markets happening everywhere. Here in Hayward, some neighborhoods are experiencing bidding wars while others continue to struggle just to get offers. Staying informed and Educating both buyers and sellers is crucial.