Miami Real Estate No Longer a Homeowner´s "Personal ATM"
The beginning of 2001 marked the onslaught of extremely cheap mortgage rates. For four years, Miami real estate has set records in home sales and price appreciation thanks to cheap lending. What appeared to be an unending demand for Miami real estate made local home prices “jump at rates not seen since the 1980’s and generated 10% gains each year in housing wealth.”
But as with all good things, the Miami real estate boom has to come to an end, and the end is near. Mortgage rates are finally beginning to climb to levels that make prospective buyers back off, and many homeowners who used refinancing or home equity loans to get quick cash over the last few years are starting to realize that rapid Miami real estate appreciation can’t continue unchecked forever.
Now, “consumers who made a habit of tapping into their home equity will find that their home is no longer a personal ATM,” and those homeowners who counted on Miami real estate appreciation “to fund their retirement or pay for their children’s education may face a big shortfall when the bills come due.”
But as with all good things, the Miami real estate boom has to come to an end, and the end is near. Mortgage rates are finally beginning to climb to levels that make prospective buyers back off, and many homeowners who used refinancing or home equity loans to get quick cash over the last few years are starting to realize that rapid Miami real estate appreciation can’t continue unchecked forever.
Now, “consumers who made a habit of tapping into their home equity will find that their home is no longer a personal ATM,” and those homeowners who counted on Miami real estate appreciation “to fund their retirement or pay for their children’s education may face a big shortfall when the bills come due.”
