As a Realtor in the Miami Beach area we deal with many buyers who are a bit hesitant and wondering where the Real Estate market will lead us into. ....Here is an excerpt from a buyer of mine and his reason for not buying at this moment, mind you this buyer is a cash buyer and does not really have to worry about interest rates going up so the decision not to buy now is based on waiting for prices to go down a bit while most buyers want to lock in the low rates that we have now instead of waiting to see how the market will do and risk rates increasing.
....."Our opinion is that the Miami market is still too volatile, and ripe for further market correction. The continuing eroding of the secondary finance markets as well as the Fedral Reserves continued resistance to easing Fed funds, leads us to believe over built and or over priced markets still have considerable downward market pressures that may well result in market freefall. Particularly areas of over saturation of similar product such as is the case in Miami and Miami Beach areas. The Miami Beach and Miami condo market appears to be a particularly oversaturated market. Therefore, while we are still very interested and committed to a property acquisition in the South Beach area for our needs, we feel it prudent to wait and see how the Miami Beach and Miami condo market reacts to the continuing market instability...."
...I do agree and I think the market will settle with prices falling a bit, in the long run everyone will benefit once the market corrects itself.