NAR: Don't expect big drops in real estate prices

MIAMI -- June 14, 2006 -- National Association of Realtors (NAR) chief economist David Lereah told attendees of the recent 2006 International Real Estate Congress and Expo that he does not anticipate a decline in South Florida home prices, though the days of rapid sales have ended.

According to Lereah, demand from foreign buyers and retiring baby boomers will continue to fuel the housing market in the Sunshine State. Foreigners account for 15 percent of homebuyers statewide and as much as 30 percent in Miami-Dade and Broward counties, NAR says.

Lereah said the U.S. import-export boom, the weak dollar and political unrest in Latin America will continue to bring foreign buyers to Florida. While fewer than 1 percent of buyers are opting for other locales due to concerns about hurricanes, Lereah said frequent storms and difficulty obtaining homeowners insurance will pose some challenges in the state.

Source: South Florida Sun-Sentinel (06/14/06) Hemlock, Doreen