Once we join the rest of the country in terms of accepting reality - we are by the way now falling under the same lending standards of income to debt ratios, and under the new appraisal requirements set forth in the lending crack-downs - we should see prices return to levels where they still should be had the past 10 years of bizzaro world not happened. In 1-2 years (or less) wait and see if we don't follow the rest of the country. I'm looking again at condos around Miami and they are around $100/psf - even less for anything that isn't new construction. These same exact condos were in the $700-800 psf range just 2 years ago - I still have my old offering and information paperwork from when I was looking at the same units back then. One of the units that was asking $700,000, is now right at $100K with the seller kicking in closing costs. And we are talking prime neighborhoods. So sit back and watch. It's not going to be pretty for sellers who overpaid, but will be great for families in our city who can move back in and not have to live 2 adults and 4 kids in a studio that they still can't afford.
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Copyright Brown - Brownstoner