Demand in the U.S. economy is reasonably strong and retailers are probably optimistic about the holiday shopping season so they are starting to order from abroad now. The trade deficit is going to take some time to turn around. It may not happen until next year.
Overall supply and demand are moving into much better balance. With that, we're likely to see far less price appreciation than we saw in 2005.
The Miami economy is the strongest it has been in my memory as a professional economist, which goes back 22 years. International trade is booming. Population growth is strong. And all that growth is creating tremendous demand for services.
A very high proportion of that job growth is occurring in high-paying professions. This is a demand-driven market and demand vastly exceeds supply.
It continues to defy all the expectations of doom in the housing market. Demand for housing still remains quite strong and this year will be a record year for single-family construction.
There's just such an enormous demand from pension funds and insurance companies to match their assets with the liabilities of the boomer generation.