Zillow , a leading real estate website, estimates the value of the that Spanish-Deco home mentioned above peaked at $1.2 million in late 2006. Today, Zillow estimates the home's market value to be just $795,000, which is notable for the sharp 34% decline from the peak, and that it's over $100,000 less than the current asking price.
The chart above goes a long way to explain the seller's current optimism. From those extreme highs in 2006 and 2007, the Miami real estate market fell hard in 2009 and 2010. But since then, the market has rebounded, with the home price index exceeding growth around the rest of the U.S.
In Miami, it's just another boom-bust-boom cycle playing out before our eyes.
Two more examples: Boom, bust, and boom
This home , with 5 bedrooms and 4.5 bathrooms, in a private, gated community is currently listed for $996,000. It was last sold in June of 2011 for $790,000. It was then listed in May of 2014 for $1.05 million. The price dropped to its current asking price in July.
Or take this home , a 4-bed, 2.5-bath home with a full acre in another gated community. The seller is asking $998,000 today. However, the property has been listed for sale off and on over the past three years, beginning in March of 2011 with an asking price of over $1.3 million.
In both of these examples, very nice homes with excellent amenities and features are for sale at a a very good discount to prices seen in the bubble years of the mid 2000s. However, in both cases, the sellers are pricing their properties at optimistic levels (that optimism is particularly extreme in the second example).
You can get plenty of house in Miami for a million dollars. The key, it seems, is to buy low and sell high, riding the city's wild waves of boom and bust.
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The article What $1 Million Buys You in Miami, Florida originally appeared on Fool.com.
Jay Jenkins has no position in any stocks mentioned. The Motley Fool recommends Zillow. The Motley Fool owns shares of Zillow. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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