As a result, home values came hurtling back to Earth — many as much as 50 percent or more from their pre-crash equity — like cosmic fireballs. That has enticed opportunistic, cash-laden investors to snatch up real estate at drastically reduced prices.

In fact, a recent report in the Miami Herald reveals that in May 2011 “home sales continued to rise, keeping South Florida on track to have its best year on record.” In addition, “in the first five months of the year, more than 23,000 homes and condos have traded hands in South Florida, one of the strongest five-month runs on record.”

While sales are clearly brisk, going in the opposite direction of national trends and actually setting records, home prices in South Florida continue to plummet. Typically, when demand increases, so does the cost of doing business.

Apparently that’s not the case in this market.

The large existing (and unknown) inventory of distressed real estate — cheap foreclosures and short sales — is likely to blame for the current situation. Ron Shuffield, president of Esslinger-Wooten-Maxwell Realty, attempts to explain it:

“It’s an odd time. We’re able to say we’re selling more homes and condos than we’ve ever sold in history, but at the same time 61 percent of our sales are short sales and foreclosures…. [Shadow inventory is also] keeping the pressure on prices. We have seven months of inventory in single-family and six months of condo. Any other time in my 30 years of doing this, when we get into levels of six or seven months, prices would be increasing more than they are today. The fear of the unknown is keeping a lid on prices.”

Real estate agents, investors and first-time buyers in the “Sunshine State” more than likely are not complaining about Florida’s foreclosure frenzy. It’s a chance to capitalize on once in a lifetime deals and market conditions that, over time, will be paid back in spades.

To get in on the red-hot action be sure to check out all the foreclosed homes for sale in South Florida and beyond on Foreclosure.com.

The overwhelming amount of distressed real estate has dragged down home prices virtually nationwide and will continue to do so as long as homeowners continue to struggle meeting their monthly mortgage obligations, according to Moody’s Economy.com.

From the report (via DSNews.com):

“We expect that house prices will continue to decline because the pipeline of distressed mortgages is substantial and because the price discounts for distress sales weaken all house prices.”

This is music to the ears for buyers and investors. And it’s a major reason the best foreclosure-related opportunities fly off the market.

Getting in on the action now, before the prices begin their gradual climb up, is an incredibly smart decision now and in the future.

It’s more than likely instant equity!

There are also a ton of options from which to choose — there is something for everyone out there if you dig deep enough.

Moody’s predicts a “rebound” by 2012, meaning that in two years these buyer-friendly conditions and amazing deals could be history. And there’s no telling if the getting, from a buyers/investors perspective, will ever get this good anytime soon.

Act fast before it’s too and help yourself … and a homeowner!

Money, money, money, money … MONEY. Some people got to have it … like SB Associates LLC in Fort Lauderdale, Florida.

The developer of the 24-story, 298-unit luxury condominium complex on the white sandy beaches of South Florida has reportedly defaulted on its $139 million loan, according to the Sun-Sentinel.

And it appears that the more than 80 people who already plunked down deposits on their slice of tropical heaven could be in limbo for up to six months until the foreclosure situation is resolved.

But don’t blame “The Donald” for this massive real estate flop. He, too, is apparently just an innocent victim.

From the report:

“The [law]suits also question the role of New York City’s real estate mogul Donald Trump and his Trump Organization in the Broward project. Promotional materials suggested Trump was a developer and partner. But after setbacks in construction last year, Trump has said that his group only licensed its name to the venture.”

It’s unclear at this time what the mortgage note holder will eventually do with the property: “keep it as a condo-hotel, make it a traditional hotel or something else.”

For the love of money!

“Real estate became very liquid especially in the condo market. People would buy pre-construction pricing and that’s before the building was out of the ground, and then they would sell the contract while the building was being constructed and for huge gain sometimes 200% gains…. They were selling anywhere from $600,000 to well over a million dollars, and now there is an active foreclosure in this building for $219,000.”