H OUSING N EWS R EPORT
just declined 5 percent or 10 percent. It’s just stopped.” Yardeni, whose real estate development company has $2 billion in assets, said high-end real estate market is frothy. Like San Francisco, foreign money has pushed Manhattan real estate prices upwards, especially in the high end. Thirty years ago wealthy Japanese buyers and developers snapped up New York properties at the peak of the housing bubble, only to have to liquidate their holdings once the bottom fell out of the market. Now, an influx of Chinese buyers — mirroring the Japanese buyers three decades ago — could be caught holding the bag when the New York City luxury market tanks.
destinations for global wealth: Manhattan and Miami. In Manhattan, the Treasury initiative requires buyers in sales of more than $3 million to be reported; in Miami, sales of more than $1 million need to be reported. The Treasury program will expire on August 27, 2016. In Miami, the Brazilians, Canadians and Russians have disappeared just as a new crop of high rise condo towers are hitting the market. Miami condo developers are starting to cancel projects, slash prices and offering incentives to spur sales, according to Jack McCabe, a Florida-based real estate analyst with McCabe Research and Consulting in Deerfield Beach, Florida. McCabe, who called the last housing crash a decade ago, believes the luxury condo market is in a bubble. He said the South Florida housing scene looks eerily similar to the 2008 housing bust, and the inventory of unsold luxury condos is ballooning. But Continued Next Page Miami: Condo Bust Looms — Again!
“ The last housing downturn was caused by the subprime loan crisis domestically that eventually turned into global recession. This time, the global recession is going to cause a U.S. recession. Jack McCabe Principal McCabe Research and Consulting Deerfield Beach, Florida
As U.S. Tracks Secret Buyers, Foreigners Flee
Concerned about foreign cash flowing into luxury real estate, the Treasury Department said in January that it would begin identifying and tracking “mystery buyers” of high-end properties in two of the nation’s major
Miami New Home Building Permits By Year
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SOURCE: : U.S. Census Bureau
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