Miami real-estate agents are hyping the market with a level of heavy-breathing not seen since 2006. Prices can only go up, they say. Sales of million-dollar condos in 2011 are up nearly 20 percent over the previous peak year of 2006.
In other words, Miami’s boom is not a broad-based market recovery driven by local families needing a home. It’s being fueled by a tiny top slice of super-rich overseas buyer looking for the latest hot investment.
That makes the market especially sensitive to financial shocks from Europe or a slowdown in growth in emerging markets. If European markets tumble and China has a hard landing, the shocks will be felt quickly at the top of Miami's glass-walled Continuum Towers or Setai.