The housing market in South Florida took the downturn in housing hit flush on the chin. Today, it’s among the top regions in the nation for mortgage defaults and foreclosures.

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:

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If you can afford it, of course.

Home prices today in your area are likely the cheapest they have been in years. Mortgage rates, too, are hovering around all-time lows. Meanwhile, the cost to rent is around the same it has been and will likely grow year-after- year.

In fact, since 1986 it’s never been this cheap to own a house as compared to the cost of renting.

Mark Zandi with Moody’s Analytics explains the long-term benefits of owning rather than renting:

“I think the arithmetic is such that if you plan to live in your home five or more years, then you should really consider buying a single-family home in most parts of the country at this point in time. Prices have fallen so far, that single-family housing now is very, very attractive; very affordable [...] and it’s now even attractive relative to renting.”

Several buyers are still waiting for the market to hit “bottom.” Those folks might miss the boat entirely … especially if they are in financial positions and personal situations to invest in a home right now.

The fact that not more people are “jumping in” has many housing experts “puzzled,” thinking that a monumental shift in buyer behavior is underway. One theory is that younger professionals are opting to spend their money renting condominiums and apartments in expensive cities — where “homes” are virtually obsolete — until their futures are more certain.

Whatever the case may be, the fact of the matter is that there are incredible real estate deals available throughout the nation. And most of them can be found on Foreclosure.com right here.

Those who fail to learn from history’s mistakes are doomed to repeat them.

Current and future homeowners would be wise to examine the causes of the real estate bust that has forced countless families into foreclosure and many more fighting to avoid it.

Unemployment, divorce, illness and other unforeseen events are hard to avoid and nearly impossible to predict. But there are several situations for which homeowners can prepare and control.

NASDAQ.com offers “3 Lessons to Learn from Foreclosure:”

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Catch them while you can.

That’s the opportunistic approach that many investors in major real estate markets such as Detroit, Mich., Las Vegas, Nevada, Miami, Fla., Phoenix, Ariz., and Tampa, Fla., are taking as home prices plunge at or below 2002 levels.

Foreclosed homes and other discounted distressed deals are being “snapped up” with a quickness, “forcing down” collective home prices and “thinning the supply of homes” by as much as 13 percent, according to BusinessWeek.com.

In fact, the report reveals that 35 percent of previously-owned homes purchased in March 2011 were done so with cold-hard cash, indicating that investors are hoping to buy low today and sell high someday in the future.

Mike Shannon, an agent who specializes in Detroit-area foreclosures, marvels at the recent surge in buyer activity:
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Many would-be investors never get off the ground because they focus on the obstacles instead of on the solutions for overcoming those obstacles.

For example, a popular myth that keeps people from investing is that it’s hard to get the money needed to buy their first foreclosure.

This simply isn’t true!

There are plenty of ways to get your hands on the money necessary to finance your distressed property deals.

All it takes is a little persistence and creative thinking.

The April 2010 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which focuses on exploring the opportunities for financing that you may have never before considered.

Seize your opportunity to get started in distressed property investment!

There has never been a better time than right now to buy your first property and make a nice profit while you’re at it. Stop making excuses and start gaining control of your financial future.

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.