The Florida Real Estate Market

The amount of homes on the market in Florida is shrinking, as there are more homes sold and banks back out of some foreclosures. In Miami Beach, reports show the number of condos for sale was down to a near 20-month supply in the month of March, which is half from just 15 months ago and down from a 30 month supply in the month of February. The number of single-family homes also saw a drop in available inventory, down to over 37K homes on the market.

Hotels also face a weak summer, and some market watchers are looking at the relationship between a poor viewing of the hospitality industry and the condition of local real estate values. They are also going be watching the industry’s role in Florida's economic recovery. These reports offer a great look into how the Florida hospitality industry is impacting real estate.

Even though the market is down, there are still plenty of experts who aren't counting them out; investors remain, waiting for the gap between bids and current asking prices on properties to narrow. Even large investment banks like Morgan Stanley and pension advisors to wealthy people, who made smart investments during the boom many years ago, are going to become the big players as there is an increased demand for office and retail sales in the market. This is not the case yet, though. A lot of investors are sitting on the sideline, waiting for the right time. As sale prices drop, and buyer activity picks up, those investors will be able to pay cash and are the ones who will be able to close deals

The commercial property sales in Florida is at an all time low in 12 years, but that is likely to change in the last half of 2009. An increase in distressed sales could be coming from investors looking at the double threat of lowered revenue and the inability to refinance loans. Also, some real estate investment companies are selling area holdings as they redesign their business. Most are looking for an increase in commercial sales, including office, retail, industrial and some hotels, but most of this commercial activity will take place in the fourth quarter.

If you have the money to invest, then now is the time to get in the Florida real estate market. Reports are showing that there will be another boom before long and those who are in now will reap the rewards.