The Orlando Sentinel had an extremely interesting article today about the Miami Condo Bust. The article detailed the dangers that go along with pre-construction investing real estate speculation.

How’s this for scary:

“Just how many other speculators face the same dilemma in the nation’s most glutted condo market will become clear during the next two years. That is when 25,000 new condo units, most of them rising in or near Miami’s downtown, will flood an area already saturated with 23,000 condos listed for sale. An additional 40,000 units have been approved, but analysts doubt the majority will break ground.

Orlando and other Florida cities — Naples, Fort Myers, Tampa and Sarasota among them — also have huge condo gluts. With 4,440 condos listed for sale, Orlando has an unprecedented 29-month supply, and last month sales plummeted 64 percent lower than a year ago.

If anyone out there who fell for this mass hysteria wants to complain, you’ve only got yourself to blame. Did anyone really think that the population of Miami was going to grow fast enough to keep up with the construction? With a crane on every corner, Miami looks like it is preparing for all of Iraq’s refugees at once.

Regardless of whether people fell for the hype or not, the big question now is whether or not these condos will ever get sold.

I think we’re in for a few years of a falling (crashing) or flat market in Miami. Buyer’s have a ton of leverage and can basically set their own price at this point. If anyone wants to get out of their penthouse, give me a call, I’ve got $10 Grand I’m willing to send your way.

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Tags: condo-boom, condo-bust, construction, crane, Miami, miami-condo-market, miami-condominiums, Miami-condos