South Florida is witnessing an increase in the resales of residential properties this year because buyers are finding the market conditions to be very attractive. The prices are extremely low when compared to the real estate boom of 2006. In addition, the government offers an $8,000 tax credit for first time home buyers that many people are taking advantage of.
The result is that an astounding 6,250 residences have been resold per month over the year 2010. This amounts to approximately 75,000 residences in Miami-Dade, Broward and Palm Beach. Only 5,600 residences were resold per month in the year 2006 when the real estate market was last very buoyant.
These figures indicate that real estate investors can be attracted to South Florida as long as the prices are right. However, many people are unhappy with the current situation. People who invested in 2006 when the market was at its peak are unable to offload their properties without incurring immense losses. The current prices are 40 percent lower than in 2006 on an average.
The size of this residential resale business was $16.6 billion in 2010. While this is an increase of $1 billion over 2009, it is a whopping $10 billion less than the total residential resales business in 2006.