Miami Florida may be one of the hottest real estate markets in the United States but its reputation may just change as sales of highly-priced homes have become few and far between.

South Florida used to be a realtors dream with an explosive real estate market, land rush and skyrocketing real estate prices at the start of the year 2000. In North Bay Village alone, real estate prices were up by as much as 250 percent and in Sunny Isle Beach by as much as 200 percent.

The real estate boom in the area was evident that almost everyone wanted a piece of Florida. This has changed the economic platform of the area resulting to more business ventures, more work opportunities and more income. However, the same reason for Floridas economic growth has made Florida a very expensive city to live in.

However, a recent analysis by experts shows that the skyrocketing Florida real estate prices may just be ending. Proof is the recent swaying in the price of real estate, resulting to lesser sales of highly priced properties. The changing real estate skyline is also shown in the doubling of the number of properties being sold in the area. Today, it is no longer to sell real property in Florida and this trend may just continue in the next months.

The real estate situation is not sharply going through a downtrend though since there still areas in Florida that have fast real estate turnovers. However, areas in South Florida may just be the first to experience the downtrend in real estate price and sales. In Miami alone, there are already 15,080 units being constructed and 28,000 more units with pending construction approval. Compare this to the only 11.241 units constructed in the past ten years and you will see what is causing the sudden downtrend.

While it took realtors a mere one week to sell a thousand-unit project in 2004, some units that have been on sale a long time ago are still in the market after eight long months.

The over-zealousness of the Florida real estate industry has resulted to the over construction of more condominium units and other properties thereby resulting to a greater supply than demand. Economists are predicting that this might cause a wide-spread bankruptcy among builders and even banks.

While realtors are saddened by the predicted drop in real estate transactions and price, speculators are eyeing the market hoping for a drop in the price of favored properties. Some sectors have already prepared funds to buy out unsold properties at bargain prices.

Investors warned against investing in downtown Miami and other areas like Biscayne Boulevard because of the surplus of investors in the area who can deluge the market and send the prices of real estate down. Most are putting their money in speculating on areas like South Beach as it already has a ready market.

SO how will this affect real estate buyers? The rest of the year may just be a buyers market for the Florida real estate market. However, prices are not expected to get really, really low so prospectors must bite the lowest price they can hope to get before the trend reverses.