The Real Deal Miami

Inventory continues to plummet across South Florida: report

October 11, 2012 03:00PM

Miami skyline

Residential inventory across South Florida has dropped 34 percent over the past year, a number approaching twice the national average of 19 percent, according to Zillow.com data cited by the Sun Sentinel.

“First-time homebuyers are being squeezed out of the market by falling inventory and the rapid influx of investors looking to buy basic homes to rent out to the growing population of people who have recently been foreclosed upon,” Stan Humphries, Zillow’s chief economist, said in a statement. “Investors are paying in cash and can close sooner, which is more favorable to banks and homeowners looking to sell.”

However, because of Florida’s high foreclosure rate, there is still a large shadow inventory of homes that may soon reenter the market. [Sun Sentinel]Christopher Cameron