Real Estate Journal Online

The number of homes for sale in South Florida has shrunk to the lowest number since 2008, with about 49,900 residential properties on the market as of last week[1]. That is less than half of the number for sale in November of 2008. Peter Zalewski, a principal with Condo Vultures, credits foreign buyers who are “scooping up South Florida properties at dramatic discounts” with the decrease in volume, and points out that these buyers have an advantage over domestic buyers who are dealing with a lack of financing options. But the property demand is not equally distributed throughout the state. In fact, Palm Beach County carries nearly 36 percent of all of the homes for sale in South Florida. Zalewski predicts that investors are starting to look away from Miami, which he believes has largely “stabilized,” toward Broward and ultimately Palm Beach.

According to the National Association of Realtors, however, Palm Beach is not the only destination in demand in Florida. In fact, not only have housing sales climbed 13 percent over last year statewide, but Orlando saw a rise in distressed sales and traditional sales as the city surpassed New York City last year in number of tourists drawn to the location[2]. International investors in the area tend to be either English or Canadian and often use the properties as second homes thanks to proximity to tourist destinations like Disney World and Sea World.

Are you buying in Florida? Do you think that a market based on appreciation could make a recovery here?

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