After reading Kevin Wells post on the South Florida real estate market, maybe renting for another year is not such a bad idea. Kevin points out two recent articles in the Sun Sentinel:

If bubble bursts, 'vultures' ready to pick up scraps

"There are plenty of projects in Miami where 40 to 60 percent of the units were sold to investors," he said. "With 30,000 new units expected to come on the market, everyone will try to sell and rent at the same time, and it's going to be a disaster."

Profit and peril: Is S. Florida's housing market ready to stall?

"Knowing your market is crucial. Right now, real estate experts fear an oversupply of luxury condos, particularly in Miami-Dade, will drag down other sectors of the market throughout the region."

"Everyone is watching the Brickell [Avenue] market, and it's inevitable there will be a domino effect," said Marcia Snyder, executive vice president of Fort Lauderdale-based Bank Atlantic."

"Real estate consultants estimate investors make up about 70 percent of the new condo buyers in Miami. In Broward and Palm Beach counties, they make up between 20 percent and 40 percent of buyers."

"The market for condos has become flooded," said Orlando-area economist Hank Fishkind, who thinks the region's housing market has peaked already. "If you're an investor, you have probably missed the window by a year or so."

I feel bad for the people who bought pre construction high, and thought they could sell it before closing. It may not be that easy.

At a recent luncheon for Miami realtors, Jeff Moor from Majestic Realty was speaking about the market in regards to buying pre construction. Jeff said...

"If you want to see a strong return on your investment, don't think you can just buy a pre construction condo and then flip before closing. Plan on living there or renting it out for at least 18-months before trying to sell."

At the luncheon, another real estate insider told me...

"My advice is don't buy anything right now. Hang tight for another year. Cash is king. Soon, you're going to be able to snatch up some really good deals."