M IAMI IS hot—especially if you are selling a home. House prices are 20% higher than a year ago. And unlike other big American cities, rents are up too (by 24% year-on-year), as the Magic City soaks up newly untethered teleworkers. Ecstatic estate agents describe a bonanza. Sellers are waiving inspections and appraisals entirely, buying units sight unseen, and aggressively bidding up prices. One agent tells of a client bidding $50,000 above the appraised value of a home—and still getting rejected. Another admits sheepishly to recently buying a house of her own without an inspection. All the usual gaudy accoutrements of the city are here: the ostentatious sports cars, the well-trafficked designer stores, the planes circling Miami Beach advertising a prominent rapper playing at a nightclub. Yet amid this exuberance, almost 8% of mortgage-holders in Miami are delinquent, among the highest share in the nation. Meanwhile, people renting housing face the end of a federal moratorium on evictions at the end of the month. A moratorium on mortgage foreclosures ends at the same time, raising fears of a spike in houses lost amid a house-price boom. Surveys conducted by the Census Bureau do indeed show worrying signs. One in four… Read full this story
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As moratoriums lift, will America face a wave of foreclosures and evictions? have 251 words, post on www.economist.com at July 24, 2021. This is cached page on The World Articles. If you want remove this page, please contact us.