Why is this happening? There are several elements contributing to this result:

1. Real estate prices were reduced between 4.1% and 18.5% depending on the region. The average of prices reduction all over the country was 9% during the last year. However, due to the economic impact in many cities, such as Miami or Las Vegas, prices reduction was much higher (between 20 and 35%)

2. The possibility to purchase a dwelling-house by a consumer returned to its historical rates. In many cities of the country, during the worst moment of the real estate bubble, real estate price was 25 times equal to the annual revenue applicable to that same property. Currently, this relation is at its historical level: 15 times. The relevance of the above mentioned is obvious: people cannot purchase that which cannot be afforded with their salaries. Therefore, the increase of sales occurs in those areas where prices were largely reduced and property became more accessible: California, Nevada and Florida.

3. The government decided to reduce again interest rates through a support plan, and now the 30 year fixed interest rate is 6.04% per year. The increase of the real estate market is now returning to normal, after having been frozen during October, as an answer to the different financial and economic measures taken by the Federal Government to overcome the crisis.

4. Many and different measures were intended to be implemented during the last months to salvage economy, ensuring that there would be enough dollars in the market to allow the credit flow freely, as for example:

• Downgrading Fed interest rates to 1%;

• Injecting 700 billion dollars and mortgage credits to the banking system;

• Transferring to the government sector the two larger second mortgage finance companies: Freddie Mac and Fannie Mae: these companies purchase the loans portfolios to the banks and provide liquidity to allow further loans;

• Increasing banking deposits insurance from 100 to 250 thousand dollars per account: This measure avoided a depositors bank run to get their money out of the banks, such as it happened in Argentina in 2001, which ended up in the “corralito”;

• A tax credit of $7500 for purchasers of their first home.

• Increasing the amount allowed for bank loans by the Government with the same state insurance, from $360,000 to $730,000 per loan.

• A program of almost 100 billion dollars aimed to refinance loans with people who have difficulties to pay, in order to avoid auctions and the losing of their dwelling-houses. . This measure shall avoid an increase in the fall of prices and in the number of empty units for sale.

This is the moment to act for all those persons interested in investing in U.S.A. because…

• Those persons interested in purchasing real estate in U.S.A. and who have been waiting for the prices to reach the bottom must think that this is the moment to enter in the market.

• Information available shows a strong progress of the real estate market at South Florida, with an increase of sales which might indicate a potential recovery of this activity.

• This is a good moment to start looking for opportunities: Since the “real estate market at South Florida offers potential purchasers accessibility and opportunities not seen for more than ten years", and moreover, if the intention is to make good business, the investor must carefully look for that property which has reduced its price sufficiently so that its rent might cover maintenance expenses and might produce a reasonable income, i.e. 4 or 5%. It is advisable to keep the property for at least three or four years, so that prices may reach the levels they had before the crisis, and sell them with a higher income.

• Likewise, it is important to look for units already rented, to ensure a funds flow as of the day of execution of the deed, and also buy in healthy buildings, without many units subject to auctions or owners reluctant to pay monthly maintenance expenses.

• The investor who normally buys in cash has a great advantage: Nowadays it is possible to get additional reductions of 10 or 15% in cash payments.

• Due to the increasing number of property in process of execution (for non-payment of mortgages), PURCHASE PRICES HAVE FALLEN REMARKABLY, and therefore there is still a number of foreigners purchasing property, which is translated into a positive impact for the real estate market, since 29% of those purchases are foreign transactions. The most effective way to make this business is to purchase in cash now, with the highest possible discount, and in one year, when the credits market is again completely normalized, to take a loan for 60% of the property and with that money buy a second property for rent, thus maximizing the money invested.

Such as it happens in any investment market, those who succeed are the ones who purchase at the exact moment and at a fair price, and who know when to enter and when to leave. The key is to know how to interpret the indicators and understand when the moment has arrived, which means that "THIS MOMENT HAS ARRIVED FOR THE INVESTOR".