So called “short sales,” which many uninformed people think will net them a bargain home in record time, are anything but short in length. The short aspect refers to the fact that the owner is short of cash and can’t pay the mortgage. Typically, these homes were bought at the top of the market and are carrying mortgages far in excess of their value. They have created havoc and controversy in the Florida real estate market.

According to many real estate pundits, it is difficult to make money in today’s real estate market, and it is close to impossible to make money in Florida real estate. However, if you closely follow the south Florida market, as I do each day, you will see several factors may help you to make money in Florida real estate.

Despite gloomy predictions and continual press reports that South Florida property values are sinking into the ocean, South Florida single family homes are appear to be holding steady at prices that are 30 – 35% below their 2006 peak. It’s the taxable values that are declining.

Bidding wars are breaking out again over short sales and foreclosures in South Florida, as real estate heats up. (Foreclosures are also known as “bank owned” or “REOs.”) Our home sales are up 30% over last year; our prices, fortunately, haven’t yet begun to rise.

The WSJ yesterday published a front page article exposing the dichotomy between the high and low-end homes in the housing market. Due to significant amounts of government stimulus aimed at fixing the housing market, the low end seems to have clunked to a bottom. However, since the attention is on the foreclosure properties and inexpensive houses, the expensive homes are missing out the rebound.

Mortgage rates continued to rise for the past two weeks as good news about the housing markets continues to trickle in. This week new home sales were reported up with the biggest single month increase in 8 years.

Expect the mortgage rates to continue to edge upwards. Today's information regarding sales of new homes showed an 11% increase in units sold after home prices had fallen.

Ohio is just one of the states that feels the pain of ever growing insurance costs such as home insurance and auto. The major insurance companies increase their premiums, hurting more middle and low income taxpayers.

Three advantages I have as a mortgage broker over a large bank are speed, pricing and service. If you really think about it, those are the three components that separate any service business from another. The recently implemented Home Value Code of Conduct (HVCC) legislation has succeeded in worsening speed, pricing and service received for any individual obtaining mortgage financing.

Federal Reserve chairman Ben Bernanke testified this morning and didn’t really bring to light any unexpected news about our economy. Labor markets are still weak and he intends to keep interest rates subdued for as long as possible without encouraging inflation. The housing markets need every possible incentive to encourage purchase activity.

Buried on page two of the Money and Investing section of the WSJ is a very interesting article that highlights one of the few reasons why I believe a true recovery in the US economy is far off. Option ARM (or "pick-a-pay") default rates are now surpassing those of subprime.

The WSJ reports that Deutsche Bank has finally found a buyer willing to shell out $600 million for the Worldwide Plaza in Manhattan. Duetsche, for those who are fuzzy on the details, was one of the bankers who thought it was a great idea to lend to Harry Macklowe back in early 2007 so he could pay the all-time record high in commercial real estate prices.