Despite the real estate turmoil of 2008, the home sales that did happen were largely attributed to first time buyers.  As a result, the government has implemented further actions to reinforce Miami real estate buying activity.

Many of these incentives have gained lots of press coverage, namely the $7,500 tax credit available to first time buyers.  Buyers who choose to take advantage of this credit would have to pay it back within fifteen years and, as is mentioned, it’s limited to people who are purchasing Miami real estate for the first time.  The U.S. senate on the other hand, is looking to take a broader, albeit pricier approach.

Instead of $7,500, the senate’s proposal would offer $15,000 to all buyers, not just those who are embarking on their first home purchase.  Since the majority of buyers who are on the fence are mostly concerned about seeing the value of their home fall further after it’s purchased, the $15,000 would help to make up for such a situation.  Will a larger tax incentive prove to be the catalyst in spurring the sales of Miami real estate?

Miami Beach homes have been one of the more severe real estate markets affected by the housing downtown.  Miami Beach homes foreclosures are commonplace and so are Miami Beach homes REOs.  This isn’t great news but for the first time in several years, Miami Beach homes are actually affordable.

It’s true that buyers for Miami Beach homes are still relatively scarce.  However, the people who are purchasing Miami Beach homes are largely first time buyers.  These first time buyers are finding unprecedented discounts on Miami Beach homes.  What’s more, interior features like granite countertops that were once reserved for luxury Miami Beach homes are now commonplace.

Not everyone is experiencing the same results from this sharp decline in Miami Beach homes.  Even though Miami Beach homes are being sold in very modest amounts at deep discounts, banks also have to incur some losses in order to get these Miami Beach homes sold, particularly Miami Beach homes foreclosures.

If we take a look at the existing Miami Beach homes market with the glass half full on the other hand, two bedroom Miami Beach homes that once commanded a whopping $700,000 during the Miami Beach homes market glory days have now tumbled to less than $115,000 dollars.  Will prices for Miami Beach homes bottom out this year? Is buying Miami Beach homes now a smart decision?  These are questions you’ll have to take into account if you’re going to buy Miami Beach homes at today’s prices in today’s highly uncertain market.