There is a fundamental disconnect between supply & demand in the Miami and Miami Beach condo markets. Inventory has steadily risen across market segments, all while transaction volume has dropped off. Higher price points are the worst offenders. The Miami $1M+ market saw a 147% increase in supply since 2013, while sales dropped 32% in the same period
The corona virus is exposing underlying fragility in the Miami condo market and in the general global economy. Ignoring risk is not a strategy with a limitless time horizon, and this cycle was in its last innings.
The video in this post covers my thoughts on the credit cycle, human nature, and how it all relates back to the real estate market.