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Where is the Miami housing inventory? I have asked the same question, my Realtor friends have asked the same question and buyers ask me the same question.  

Buyers are a dime a dozen. Sellers are scarce. 

The latest Bloomberg report validates what we already know, the housing inventory supply is low.  Homeowners are not selling. Why?  Blame it on hope or debt.

Miami homeowners “hope" prices will appreciate once again so they can sell. On the other hand, you have owners who owe more “debt” than home and won’t sell. 

Home values will not appreciate dramatically. Well, unless we have another synthetically induced 20-year housing bubble. 

Bloomberg indicates that Miami homes for sale had 35 percent fewer listings in April compared to same time last year or a 5.7 month supply. In Broward County, inventory fell 31 percent or a 4.2 months’ supply.  Homeowners are holding on and as a matter of  fact, so are lenders with the thousands and thousands of Miami-Dade foreclosures (shadow inventory). 

Can you imagine what will happen to home values if we are flooded with all those foreclosures? Thumbs down,my friend.

Information is power. I am always looking for at least a daily fix of business or political injection. Wow, did I get a dose today! I found the chart below on the History of Home Values by Yale economist, Robert J Shiller. Remember him? He predicted the housing crash.  Shiller validates my opinion that home values for existing homes will continue to drop contrary to what others in the industry may want you to believe.  

Folks, we haven’t hit bottom. The data for the past 100 years shows that home values, adjusted for inflation, have been consistent except during the Great Depression, World War I and II, and the housing bubble period that ended in 2006. Therefore, based on historical trends below, is another decrease in home values forthcoming? At what point does it make sense to hold'em or to fold'em?

A History of Home Values 

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