By Katherine Lewin MIAMI TODAY | January 24, 2019
Miami-Dade, Broward and Palm Beach counties are expected to show a “mixed-level of growth” this year, according to the new Florida & Metro Economic Forecast from the Institute of Economic Competitiveness at the University of Central Florida, which says an average personal income could grow 5.2% a year and annual wages 3.5%
However some professionals in the community expect an economic downturn in Miami that has negative consequences and possibly some benefits as well.
“I think growth is slowing and if we’re not in a recession in 12 months it will definitely be on the horizon. From a real estate standpoint there’s less condos coming out of the ground. The sales of both residential condos and housing as a whole have slowed down,” said Josh Migdal, a partner with litigation firm Mark Migdal & Hayden. “We’ve seen in looking at our clients an uptick in lawsuits related to broken joint ventures. People invested in joint venture real estate projects and were promised certain returns. Those returns are not being achieved.”
Mr Migdal also sees the mortgage market ripe for fraud because both interest rates and house prices are increasing while wage growth isn’t keeping pace.
However, Mr Migdal said he believes a pullback is “good” for the community in some ways: if housing “re-calibrates” and is more equal with current wages, that could be positive for the local community.
“With a little pullback, it allows people to transact again. I think because everybody is waiting for this recession there’s somewhat of a paralysis… I don’t think that there going to be another financial crisis. I think there is going to be a short recession to center everyone,”
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