The Reporter (Florida Keys Weekly Newpaper) January 25, 2008

As I picked up, our local newpaper today I, must share the following article:

Agents see luxury homes lifting housing market (By Kristen Burnie)

2007 was a tough year for the real estate nationwide, but some real estate agents say the Keys'

unique attributes have helped stabilize local sales and could help the Keys rebound from the slump

more quickly than other areas of Florida.

A high percentage of expensive homes, proximity to waterfront and limited inventory have some agents

reporting increases in sales in 2007, while others say they've already seen increased activity in 2008.

High end helps market

Some Keys real estate agents say sales of high-end homes helped stabilize the market last year.

Data provided showed that the average sales price of landlocked single-family homes listed

with Multiple Listing Service in the Upper Keys dropped more than 15 percent in 2007, down from

$476,397 in 2006 to $403,907.

REAL ESTATE OUTLOOK

But in the same year, the price of single-family waterfront homes remained relatively stable. It dropped less

than 6 percent, down to about $1.97 million from about $2 million in 2006.

The data show that sales of high-end homes stayed strong. The number of canal and lake-front

homes sold actually increased to 250 in 2007 from 193 in 2006, while 43 open water homes sold in 2007,

only seven fewer than the 50 that sold in 2006.

Compare that to a 13 percent drop in the number of land-locked single family homes sold, a total of 112 in

2007 compared to 129 in 2006, it's easy to see that "the higher-price properties are

moving considerably more."

Buyers of high-end homes likely felt less affected by the struggling economy. "Certainly you

find that the buyer of the expensive home is far more insulated from the economics

that might affect the middle-class buyer who might be interested in buying a second

home". "I think that during recessions, the high-end properties don't tend to do as poorly because the

wealthier people don't tend to suffer as much." .

The comeback Keys

While the Keys market might be down for now, don't count it out, agents say.

A slew of attributes that set the Keys apart from other areas in Florida have some agents hoping for a

sooner-than-expected rebound in the local market.

"I think we're very unique and as a result we're going to more favorably hold our market values

compared to other areas."

Proximity to water, warm weather and limited inventory will help Keys properties retain value.

The Keys market is in a favorable position compared to neighboring Miami-Dade County. "I think

we're better off". The building was unbridled up there.

As for the outlook for 2008, "We're cautiously optimistic" "We've already seen a pickup in calls."

A particularly harsh winter has generated more interest from northerners looking for a permanent

escape from the cold, and the strength of the euro and the Canadian dollar has prompted more

foreigners to seek out a second home in the United States.

"I think the new (18 mile) Stretch will help the market and the new Homestead Hospital. If you

had the choice to drive down a beautiful 18 mile highway to the Keys, or live in Homestead, where

would you live?"

Buyer's market

The market presents a great opportunity for first-time buyers or for buyers looking for more affordable

homes. While "jumbo loans" have become expensive and difficult to get , it's still relatively easy

to get a "conforming loan" - less than $417,000 - with an interest rate of less than 6 percent.

"If you've got to live somewhere, you might as well own a house. It's much better than renting,

no matter what." "There actually isn't a better time to buy, the interest rates are super low.

The shift to a buyers' market is natural, especially after a development boom as large as the one South Florida

saw a few years ago.

"This market is all about the end-user now and not about the speculator", "It's a great opportunity for

the younger people and people that didn't own yet."