| There is no question that the red hot south Florida | | | | sensational articles that that they produce without |
| real estate market is seeing signs of cooling, but the | | | | taking all factors into account. It is easy to publish an |
| idea that there is a bubble in the market is | | | | article bashing the real estate market, but it is not so |
| exaggerated. The bubble talk has been created to a | | | | easy to undo the damage they cause. Some articles |
| large degree by the media with irresponsible reporting | | | | compare the MLS active and closed sales statistics |
| and lack of in depth research. There have been | | | | from the month of January 2004 to the month of |
| numerous articles written that may only use one or | | | | January 2005. That makes it very easy for the |
| two sources to gather information, and the rest is | | | | reporter to create a large disparity in the number of |
| pure speculation from a reporter with zero | | | | condos or homes sold or on the market in 2004 |
| knowledge of the real estate market. Most of these | | | | compared to the numbers sold for the same month |
| reporters have probably never been involved in any | | | | in 2005. Once again, this boils down to irresponsible |
| type of real estate transaction in their lives. There | | | | reporting.Another factor not being taken into account |
| are many factors that need to be considered before | | | | is the recent trend of developer run resale programs. |
| making any kind of speculative opinions on the South | | | | These resale programs take place when a condo |
| Florida real estate market.A recent article in the Miami | | | | project is sold out and under construction and the |
| Herald said existing home sales plunged in South | | | | developer begins to resell the condo units that had |
| Florida as the real estate market continued to shift | | | | been pre sold one or two years earlier. These resales |
| from go-go to so-so. Nowhere in the article did it | | | | are not public record until they close and thus are not |
| mention that we had experienced a major hurricane | | | | factored in to the overall numbers of South Florida |
| in October that brought all business to a stand still for | | | | real estate that has been sold. Due to the fact that |
| nearly a month. Many real estate transactions that | | | | these types of resale programs are relatively new |
| were set to close were delayed for weeks or | | | | (within the last two years or so) most of these sales |
| months and some probably did not happen at all. If | | | | have not been recorded in the public record. |
| there is a gap like that in the real estate cycle for | | | | Developer condo resale programs are a very good |
| close to a month, the affects do not show up until a | | | | thing for a couple of reasons. One, it weeds out |
| few months down the road, which would be roughly | | | | investors that would otherwise have to wait until |
| the month of January. So it is no wonder real estate | | | | closing to sell their condo and cause a flood of units |
| sales were down for that month. Reporters and | | | | on the market. Two, and probably more important, is |
| editors should be held somewhat accountable for the | | | | that pricing is controlled to a large degree. |