Real Estate Prices too High with 3 years supply

In Wednesday’s New York Times, the business section featured an article about real estate auctions and the prices that were being offered for properties in major cities throughout the country. I focused specifically on Miami, since our auction company is based in Miami. A graph at the bottom of the page depicted income to value ratios of 6 major cities, including Miami. Miami ranked the third worst city when determining affordability of housing. The point being that Miami and much of Florida still has a way to go in the form of further price reductions to be in line with much of the rest of the U.S in housing affordability. This will play a major factor in helping us to return to a normal sales cycle. This in large is determined by the amount of available housing on the market. At the moment Miami Dade has close to a three year supply of housing on the market. A healthy supply of available housing is considered to be 6-9 months by many industry experts. Obviously we have a very long way to go to achieve these ratios.