{"id":1531563,"date":"2025-04-21T16:45:00","date_gmt":"2025-04-21T20:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1531563"},"modified":"2025-04-21T16:45:00","modified_gmt":"2025-04-21T20:45:00","slug":"miami-housing-market-hit-by-breathtaking-collapse-in-demand","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/miami-housing-market-hit-by-breathtaking-collapse-in-demand\/1531563\/","title":{"rendered":"Miami Housing Market Hit By “Breathtaking” Collapse In Demand"},"content":{"rendered":"

Miami Housing Market Hit By “Breathtaking” Collapse In Demand<\/span><\/p>\n

\n

Nick Gerli, CEO and Founder of real estate analytics firm Reventure Consulting<\/a>, has issued another troubling update on Florida’s housing market<\/strong>\u2014this time sounding the alarm about a collapse in demand<\/strong> across the Miami metro area. He described the plunge in sales as “breathtaking<\/strong>.”<\/p>\n

For the last few years,\u00a0we’ve tracked the post-Covid surge in inventory hitting\u00a0Sun Belt states<\/strong>, including this note from last summer:\u00a0<\/p>\n

Florida Housing Downturn “Keeps Getting More Intense By The Day”<\/a><\/em><\/p>\n

This was followed by\u00a0Gerli’s report in late January: “My Favorite Housing Market Graph Right Now<\/a>“<\/em>…\u00a0<\/p>\n

“My Favorite Housing Market Graph Right Now” https:\/\/t.co\/yzvc1WIyKM<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) January 30, 2025<\/a><\/p>\n

Now\u00a0Gerli has offered more color on the deteriorating housing market<\/strong> in Miami:<\/p>\n

The collapse in demand in Miami’s housing market is breathtaking<\/em><\/strong>. Sales are down 50% from pandemic peak, and are 30% below the long-term average for March. There’s a narrative building in Florida that somehow Miami won’t be impacted by this housing downturn. And that narrative is likely wrong.<\/em><\/p>\n

The collapse in demand in Miami’s housing market is breathtaking.<\/p>\n

Sales are down 50% from pandemic peak, and are 30% below the long-term average for March.<\/p>\n

There’s a narrative building in Florida that somehow Miami won’t be impacted by this housing downturn.<\/p>\n

And that narrative\u2026 pic.twitter.com\/JS9iHEfNYb<\/a><\/p>\n

\u2014 Nick Gerli (@nickgerli1) April 19, 2025<\/a><\/p>\n

Gerli debunked some misconceptions about the downturn, with some individuals saying this is “West Coast only.”<\/p>\n

1) What I’m starting to hear here on the ground in Florida is that this is a “west coast only” downturn. And that it’s purely the hurricanes that hit Tampa last year that are causing issues.<\/p>\n

But in reality – everywhere in Florida’s housing market is negatively impacted,\u2026<\/p>\n

\u2014 Nick Gerli (@nickgerli1) April 19, 2025<\/a><\/p>\n

Inventory in Miami has surged to 51,000 homes<\/strong> – the second highest on record.\u00a0<\/p>\n

2) Inventory in the Miami metro is up to 51,000 homes, which is the 2nd highest level on record for March according to Realtor’s inventory data set. pic.twitter.com\/JHV6g08dYW<\/a><\/p>\n

\u2014 Nick Gerli (@nickgerli1) April 19, 2025<\/a><\/p>\n

Meanwhile<\/strong>.\u00a0<\/p>\n

3) Meanwhile, price growth in the 3-county metro is now shifting down.<\/p>\n

Values are already dropping in Palm Beach (-2.5%) and Broward (-1.1%) YoY.<\/p>\n

While they’re still up slightly in Miami-Dade (+1.8%). pic.twitter.com\/aZXcn7AtpP<\/a><\/p>\n

\u2014 Nick Gerli (@nickgerli1) April 19, 2025<\/a><\/p>\n

“In some ways, it’s surprising prices haven’t dropped by more already due to the demand collapse. And resulting inventory spike.<\/strong> but in the end housing downturns can take time to play out. And the whole Miami area is at a big risk if the current trends in the market continue,”\u00a0Gerli noted.\u00a0<\/p>\n

According to the Reventure app, prices across\u00a0Miami-Dade County are 20.3% overvalued<\/strong>.\u00a0<\/p>\n

5) In particular, prices in Miami-Dade county are 20.3% overvalued compared to the long-run norms, indicating some major downside risk. pic.twitter.com\/Gwboa5av7y<\/a><\/p>\n

\u2014 Nick Gerli (@nickgerli1) April 19, 2025<\/a><\/p>\n

He warned: “The more overvalued prices are, the greater the risk of downturns<\/strong>.”<\/p>\n

6) The more overvalued prices are, the greater the risk of downturns.<\/p>\n

You can see Miami went through an epic downturn in the last crash, when prices actually became 33% undervalued.<\/p>\n

This is when a lot of people in Miami real estate made their money. pic.twitter.com\/vLeaP6vqB9<\/a><\/p>\n

\u2014 Nick Gerli (@nickgerli1) April 19, 2025<\/a><\/p>\n

Separately, and more broadly, the US housing inventory for new homes has hit its highest level since 2007.<\/a><\/p>\n

<\/a><\/p>\n

What could possibly go wrong in an oversupplied housing market, with 30-year fixed mortgage rates hovering around 7%?<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 04\/21\/2025 – 12:45<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/personal-finance\/miami-housing-market-hit-breathtaking-collapse-demand<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Miami Housing Market Hit By “Breathtaking” Collapse In Demand Nick Gerli, CEO and Founder of real estate analytics firm Reventure Consulting, has issued another troubling…<\/p>\n","protected":false},"author":0,"featured_media":1531564,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1531563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6qqD","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2025\/04\/bfm9C07-zE3jrb.jpeg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1531563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1531563"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1531563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1531564"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1531563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1531563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1531563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}