IS THE HOUSING CRISIS OVER ?

The answer is key to your homebuying success.

It's the age-old question: What comes first - the boom or the bust? In the end, wise homebuyers purchase at both ends and also at every point along the way - without trying to time the market. Despite the often dramatic highs and lows, these savvy buyers know that real estate has historically outperformed nearly every other type of investment.

It's true that the housing market has had its fair share of trouble during recent months - just like it has at various other points in our country's history. And, just as it has always done, it will bounce back - to prices that are higher than even the last boom.

INVEST IN OUR PARADISE ....This is particularly true of places like South Florida that have something truly unique to offer. In our case, there is no other place in the country that boasts this much coastline, a sub-tropical climate, international airports and prime business hubs, including a growing biotech corridor in Port St. Lucie. Since we are one of the most visited destinations in the world, we also have the finest restaurants, shopping, cultural opportunities, parks and beaches and sporting venues.

To put it simply, Florida is a place where you will never be bored and where you can enjoy the outdoors 365 days a year with sun, flora and fauna that will continue to capture the imagination of artists, residents and tourists alike for years to come.

And, as long as it remains a desirable piece of paradise, people will continue to purchase real estate here, driving the current pent-up demand, which will begin to deplete the excess supply, driving up prices - and your home's appreciation - once again.

Will you be one of those who will be able to say you purchased during the current market? If so, you will be taking advantage of some of the lowest prices in years and mortgage rates that are still extremely attractive.

ARE AMERICANS MISSING THE BOAT? There are many who think Americans are missing the boat on opportunities here that international buyers have already started to seize. According to the National Association of Realtors (NAR), international buyers currently account for more than 15 percent of total real estate sales in the state, with one third of them settling in South Florida.

The majority of these buyers are eagerly purchasing real estate here for a nuber of reasons: the Euro is strong against the U.S. dollar; the homes here are generally more affordable than in Europe and they often offer more square footage and more attractive designs for the money; and many appreciate the equal opportunity and limited number of barriers found in the U.S. versus other countries.

While many of the aforementioned benefits are the same for Americans, they haven't seemed as quick to realize the truly incredible values that exist in today's market.

"The public needs to learn not to listen to the negative hype or to sit back and blindly wait for the b ottom of the market," says Diane Desingue-Monastra, assistant vice-president of Suntrust Mortgage. We will never see the absolute bottom. Yet, while they wait for it, the American people are missing the chance to talk to someone about their options and losing this golden opportunity."

SIGNS OF A TURNING TIDE: There are signs, however, that the tide is beginning to turn. In a June 9 Reuters article, Joanne Morrison reported that "pending sales of previously owned U.S. homes unexpectedly rose in April to the highest level in six months as foreclosed properties flooded the arket and drove prices sharply lower." "Bargain hunters have entered the market en masse, especially in areas that have seen double-digit price declines," says Lawrence Yun, Chief Economist for the National Association of Realtors.

Christopher Low, Chief Economist at FTN Financial in New York, says the pickup in pending home sales could be a sign that the housing market might soon be stablizing. "Sales will stabilize in the next few months and that will set the stage for inventories turning to normal some time next year and maybe even for prices to appreciate a bit." Lowe says. "For now, prices will continue to fall. There is still an inventory overhang that will take 18 months to work through. The end game of the housing bust is near."


SUN-SENTINEL - Saturday July 5, 2008 by Garrett A. Foster, Advertising Real Estate Writer - in part.

The Sunshine State is about to boom with Boomers.

Between 2010 and 2030, Baby Boomers, born between 1946 and 1964, are expected to descend on Florida in even larger numbers and will increase their standing as the state's largest age group.

The reason: They are nearing retirement age, the state's housing prices have become more affordable and Florida's tropical climate remains a draw.

"I enjoy warm weather and I want to be close to the beach," said Frank Moschiano, 50, who on Thursday moved from Albuquerque, N.M. into a two-bedroom condominium in Fort Lauderdale. "The social and professional opportunities in Fort Lauderdale are huge. The real estate prices kept dropping and dropping ... it made it easier for me to afford.

Boomers made up about 23 percent of Florida's 15.9 million population in 2000, according to the U.S. Census Bureau. In 2010, they will account for 27 percent of the 19.6 million people expected to be living here.

"The first of the Baby Boomers are just barely over 60 now, so over the next 10 or 15 years, you'll see a real increase in that group," said Stan Smith, Director of the University of Florida's Bureau of Economic and Business Research. "Lower [housing] prices could have some impact because historically Florida has been a relatively low-cost place to live but that has been going up in recent years."

Lured by low taxes and the advent of Social Security payments, throngs of seniors flocked to Florida in the post-World War II economic boom. Their numbers ebbed in the last decade, but Baby Boomers over the next 20 years are expected to reinvigorate the state's status as a retirement mecca.

Such influx worries some demographers and social services advocates. "Florida is going to face a very different racial and cultural gap as the older Boomers age and the young immigrants come with competing demands on public services," said William Frey, a demographer with the Brookings Institution, a Washington public policy think tank.

Edith Lederberg, Executive Director of the Aging and Disability Resiyrce Center of Broward County, said there are already waiting lists for seniors needing most types of subsidized in-house services, such as personal care, home-delivered meals and nursing care. "It will get worse before it gets better," she said. "A lot of Baby Boomers will expect swocial services to be there for them and that won't be the case because funding hasn't kept pace with the need or demand."

Robert McFall, Chief Executive Officer of Area Agency on Aging of Palm Beach/Treasure Cost Inc., agreed. "Florida's a destiny and its demographics are on a definite collision course unless we have the fortitude to invest in those essential services that will sustain a growing older population," McFall said.

Real estate agents say they are already fielding more calls this summer from Boomers, especially those who live up North. Sparking their interest is the continued drop in home and condo prices and the large number of foreclosures on the market.

Ron Schulman, Managing Broker at Majestic Palms Realty in Boca Raton, explained why. He had a condo listed for $70,000 at King's Point in Delray Beach that sold - after more than a year - for $20,000. "These Baby Boomers are thinking more about coming here, and they're realizing now is the time," he said.

The bargain prices enticed Jim and Debra Ciervo. "We came for the weather," said Debra Ciervo, 45, who recently moved from New Jersey to Tamarac. "The prices are so much lower right now. We got our house for $100,000 less than what it was going for a year ago.

South Florida's high cost of living was partly to blame for an unprecedented population drop from 2006 to 2007. According to newly released U.S. Census Bureau estimates, 26 of Broward's 31 cities lost a total of 15,000 residents, and three of them - Hollywood, Coral Springs and Pembroke Pines - made the Top 10 list of the nation's fastest-shrinking large cities.

In Palm Beach, 27 of the county's 38 communities lost a total of 2,238 people.

"I think people got run out of town by the high prices and now that prices and rents are coming down, we'll see more people," said Brad Hunter, South Florida director of the research firm Metrostudy in West Palm Beach.

Jim Godino, 59, a luxury-car salesman from Boston, is one of them. He is looking to buy a house in St Lucie or Palm Beach County. "I'm just waiting for the house that's a good bang for the buck that I can make an offer on," he said. "With the economy the way it is, I will probably have to work, so I'd prefer to be in a place where I can play golf and enjoy the warm weather."


Sun-Sentinel, Monday August 4, 2008 by Robin Benedick and Jennifer Gollan, Staff Writers.