Sales slowing down as supply of available properties tightens

By Rafael Gerena-Morales
Business Writer
Posted February 26 2005

PRICES AND CHANGES

South Florida home prices continued to sizzle in January, jumping more than 20 percent across the region compared with a year ago, as sales activity slowed because of a tightening supply of for-sale properties.

Local real estate brokers say South Florida home prices are surging because interest rates remain relatively low and people continue to relocate to the area in large numbers.

Moreover, a growing number of residents are buying additional homes -- while keeping their original units -- which means fewer homes are being put up for sale. As a result, the demand for South Florida homes is outstripping supply-- and driving prices even higher.

"This is the strongest market that I've seen in my 23-year career," said Rei Mesa, a Plantation-based broker for Prudential Florida WCI Realty,and so and so....