BY ERIK BOJNANSKY
Special Correspondent

Happy days are here again, acclaim Realtors and analysts interviewed by CondoVultures.com, as recent data suggest a significant increase in South Florida home purchases and a decrease in residential inventory.

Well, maybe relief and cautious optimism are better descriptions of how many Florida real estate agents are currently feeling.

South Florida's inventory of condos, townhouses and single-family homes has fallen by nearly 24 percent in seven months. On Nov. 24 there were 107,527 residences available for resale. As of June 15, there were only 82,047 -- a reduction of 25,480. Meanwhile pending sales in South Florida have increased by more than 68 percent between November 24 and June 15 from a total of 9,302 to 15,645, according to a new report released by CondoVultures.com.

"There is a percentage of the population that believes the bottom of the market has hit," said Jeff Morr, CEO of Majestic Properties. "Sales are way up."

Brian Paul, CEO of the Realtors® Association of the Palm Beaches , credited low home prices and the $8,000 federal tax credit for first-time home buyers for the increased buying trend, especially among those who couldn't afford buying a condo or a house two years ago. The prospect of rising interest rates has only increased the pace of home-buying, Paul said.

"Housing is affordable again," Paul said, "People are recognizing that and are getting into the market before they are priced out."

Situations are popping up where investors can, in some cases, collect more on rent than the property actually costs on a monthly basis. A five-person panel is scheduled for Tuesday, June 16, to discuss "Rental Rates and the Quest For Double-Digit Cap Rates" at the Doubletree Grand Hotel just north of Greater Downtown Miami.

Participating in the panel discussion will be moderator Peter Zalewski, a principal with Condo Vultures®, along with:

- James Donnelly, president of the Castle Group condo association management company;

- Alan Ojeda, developer of the new Miami high-rise rental tower One Broadway;

- and Raul Valdes-Fauli, Miami-Dade County president of CNL Bank.

The main difference between the homebuyers of today and those during the boom years is that "the new buyers are actual buyers" and not speculators who hope to flip a condo or house for a profit, said Bruce Picasso, director of market research at Integra Miami.

"Today it is a buyers market where you are finally [close to] equilibrium where buyers and sellers are willing to do a transaction," he said.

The low inventory numbers also suggest that "we are going into a normal market." Picasso said.

However, Miami-Dade and Broward still has a way to go before it becomes normal again.

"In 2004, when everything was crazy, it took less than one month to sell a home. Normally it takes six to 12 months," Picasso said. Then in March 2008 it took 45 months to sell a home in Miami-Dade County, Picasso said.

"Today we are at 19 months of inventory," meaning it takes 19 months to sell a condo. In March 2008 it took 28.7 months to sell a residence, compared to 15 months "today," according to Picasso

If Brian Paul's figures are correct, Palm Beach County may have already hit normal equilibrium levels. In December Paul said it took 36 months to sell a home, now a home can be sold in eight months.

"People have realized that the time to buy is now, particularly in Palm Beach County," Paul said. said.

Marla Martin, communications manager for the Florida Association of Realtors, said the uptick in home sales can be seen in most parts of Florida. However, even as home sales go up, median home prices continue to decline.

"It's a little early to know exactly what that means," she said

According to the Florida Association of Realtors, the median price of a single-family house in the West Palm Beach-Boca Raton area was $314,000 in April 2008. By April 2009 median single-family house prices fell by 25 percent to $234,400. The median price for condominiums in that same area was $156,400 in April 2008 and then $98,200 in April 2009, a decline of 37 percent..

In Fort Lauderdale the median house price was $298,100 in April 2008, falling 36 percent to $191,300 in April 2009, according to FAR. The median sales price for a condo in Fort Lauderdale was $150,000 in April 2008, falling 47 percent to $79,900 in April 2009.

Finally, in the Greater Miami area, the median price for a single-family home was $291,900 in April 2008, then plummeted 39 percent to $177,000 in April 2009. The median condo price for a Miami condo was $275,000 in April '08 and then sunk 51 percent to $133,500 in April 2009.

Sales trends suggested to Picasso that homeowners in Miami-Dade and Broward are starting to recognize the true value of their homes. However, many sellers are still stubbornly holding on for a better price.

"People will have to adjust their prices lower," he said, adding that he believed median home prices have reached bottom and won't fall any lower.

Morr said his agents have been selling condos in Brickell and Miami's Biscayne Corridor left and right.

"The market is selling, the cash buyers are coming out of the closet," he said. "People are definitely buying units."

At the 1800 Club in North Bayshore Drive, Morr claimed his Majestic Properties team is selling 15 to 20 units a month.

"This has to be the best summer in the last couple of years," he said.

However, Morr pointed out that Miami-Dade was hit by a "double hurricane" in terms of the real estate market. The market there began slowing down in January 2006 and kept falling until it looked like it was recovering in 2008, Morr said. And then the banking crisis hit, grinding transactions to a halt.

Now, looming over the horizon is the prospect of interest rates being jacked up.

"That will affect us in the future," Morr said.

But for now, Morr is grateful for the higher sales volume.

"We don't want to celebrate yet but I do believe things are improving," he said.

Erik Bojnansky is a special correspondent for CondoVultures.com. He is freelance journalist and former Editor of the Miami SunPost.