The Real Deal Miami

South Florida home prices face huge drop; NAR remains optimistic

June 12, 2008 06:59PM

A housing analyst at Deutsche Bank warns that South Florida homes will need to drop more than 36 percent to return to their levels of affordability from 2000 to 2003. Home prices in Palm Beach County would have to fall 38.1 percent from now until the end of the housing slump, the report says, while Broward County prices would need to drop 36 percent. Despite such predictions, optimistic National Association of Realtors chief economist Lawrence Yun said at a conference today that South Florida home prices could increase by 20 to 30 percent in the next five years, and could start to turn around as early as the end of 2008.