The Real Deal Miami

Obama rescue plan impact limited in region

April 28, 2009 10:06AM

Plunging real estate values have blunted the impact of federal plans to revive housing markets in South Florida, mostly because banks are still too nervous to lend money. Mike Larson, a real estate analyst with Weiss Research in Jupiter, said time, rather than policy initiatives, will create a balance of lower prices and a turn in the broader economy to end the downturn. Although the Obama administration has added an $8,000 tax credit for buyers who have bought a home in the past three years and must close before December 1, mortgage funds are not forthcoming on a large scale.