Is the “American Dream” hurting the Real Estate market in Miami?
The “American Dream” could differ depending on who
you ask, but firmly on top of most lists there are two that out rank the
rest.
Home ownership is probably number one, closely followed by “being
your own boss”, this entrepreneurial desire affects the home ownership more
forcefully than we can imagine.
Why is being your own boss so entrenched?
The promise of unlimited earnings and progress in a short
time motivates and attracts the potential new entrepreneurs.
But another reason as powerful is that a great number are not new to the labor market. Many have years
of experience, training and in a lot of cases college degrees, but, they don’t speak enough English to be hired in the regular job
market for opportunities with higher wages to match their skills.
There is one exception, the Real Estate industry is probably
the only profession that allows to train and take the State Licensing exam and
obtain the license all in Spanish.
The make up of the Miami population has changed drastically in the past 20 years. When I arrived in There is one experience that comes to mind and to show the contrast of Miami in the 6os and now, there were stores that had prominent notices that read "Se Habla Español"
It is very possible for an
individual to raise a family for years without the need of speaking English, compounds
the cycle.
Having laid the ground of what feeds the entrepreneurial
desires of the people in Miami, let's talk about how it might influence the market economy of
the area.
It is well known that qualifying for a home mortgage is harder
than in the past. Tax returns are used to quantify income and for those who
derive income from entrepreneurial work is even tougher.
Let’s look at the single- family homes. in Miami-Dade, single-family
home sales were down 13.5 % to 1,104 however the median sales price increased
8.1 % to $348,000. Cash deals dropped 29.1 %, probably representing less
activity from foreign buyers and investors. Active listings increased 2.5
percent, the inventory at the current sales rate was up to 6.2 months. It’s the
absence of affordable inventory that slowed sales. Of the 6,517 homes listed,
only 959 were priced below $300,000.
The entry home price has
outpaced the wages, leaving out of the market lots of first time buyers. Not
only the self-employed but also wage earners.
There are number of questions that come to mind.
Does the large number entrepreneurs in Miami, create a grey economy?
Does it affect the wage level?
What do you think, I love to have your comments and input.
Guillermo Sanjurjo, Realtor®
Suscribe: bit.ly/customer-portal2wpBstF
My gratitude to Brian Bandell – Senior Reporter, South Florida
Business Journal who’s reporting I used to craft this message
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