In an attempt to keep foreclosed families from becoming homeless, mortgage buyer Fannie Mae has come up with a program that will rent homes back to delinquent borrowers at market rates.

While Florida foreclosure numbers fell 6 per cent between the second and third quarter, the state still shows that approximately 1 out of every 158 homeowners is currently in some stage of the foreclosure process. While no one can give exact reasons for this slight decrease, some feel that additional short sales, along with the federal government’s push for mortgage modifications, has helped slightly in damming the foreclosure flood.

Despite the fact that we’re supposedly in a buyer’s real estate market, there don’t seem to be enough houses to go around to satisfy the needs of all the first time buyers moving into the Florida market. Perhaps that is why realtors are reporting multiple offers on bank foreclosures, and owners are giving less and less ground on selling prices.

It is not a secret to anyone that the rate of foreclosures in south Florida has increased more than 25% since last year at this time. It’s also not a secret that investors with cash and first time home buyers are gobbling up foreclosures within days of their hitting the market, often paying a premium over asking price. This is occurring during what is still considered a buyer’s market. Realtors continue to report offers in the dozens for reasonably priced foreclosure properties.

It is always good news for us in Florida when the Case Schiller home price index tells the world that the housing market in our fair state is on a continuous track of improvement. Even more telling about the state of affairs in our state is that the Florida Consumer Confidence Index, which is just what it sounds like, also showed a modest increase.

It’s hard to believe it, but Florida homes sales have been on the rise now for the last 12 months. August marked a 28% increase in sales over July. So, despite any reports to the contrary, these sales figures show that Florida is still a place where people flock to live.

While the sales figures of low and middle tier homes in South Florida continue their rapid upward climb, and their prices creep up, sales and prices for high end, luxury homes continue to decline.

People purchase homes for two main reasons. The first is the most obvious: for shelter, comfort and a place to raise a family. The second has to do with the American dream: we’ve been taught that a home is our largest investment. Buy a house, live happily ever after in it, and when you’re ready to retire, sell it for a nice profit above median price value.

It’s time to buy Florida multi-family property for one simple reason: these properties are about to become less expensive. Of course, there’s a reason that this price drop will come about: temporary loss of some renters.

If sales figures in South Florida are a trend indicator, it appears that more and more people are buying less and less in a house. Even those who might be able to afford a more luxurious property are looking at homes simply as places to live, rather than showy indicators of lifestyle.

Because real estate has been leading the economic news for several years, it is not surprising that everybody feels like an expert on the subject. With that in mind, I’ll claim no expertise at all; instead, I’ll offer some advice to the people I work with every day: new homebuyers in South Florida.

According to media stories all over the country, the South Florida market, from West Palm Beach to Miami, is awash in overpriced condominiums, just waiting for eager buyers to snap them up for pennies on the dollar.