South Florida: A Real Estate Hotspot.

South Florida is often viewed as one of the top destinations in the U.S. With Miami's beaches, the beautiful everglades, lots of entertainment and magnificent real estate properties, people from all over the world choose this spot to settle. There's also more logical reasons to move to this area. The biggest drop in the average mortgage rate occurred recently this April, bringing rates down to an average of 2.65 percent. Having reported last 2nd of April a profit of $17.2 billion for 2012, Fannie Mae is also making moves to increase funding for home buyers. While there are those who are afraid to buy, this year seems like the perfect time to get into a new home in South Florida. In fact, as sellers have realized it's a buyer's market, they are more than willing to work with home buyers. If you want a beautiful place to live for a cheap price, South Florida offers some of the best deals for real estate.

1. The Keys to Florida's Real Estate Market

Affordability is the main factor when you view these properties in South Florida. Much of the homes are listed way below value because sellers know it's a buyer's market. Even if homes are in ideal locations with homes built less than 10 years ago, you can find that their prices are much lower than in any other area in some of the top destinations around the country. The National Association of Realtors' said that homes were more affordable than ever in December of last year. You can find five bedroom properties near beaches listed for less than $300,000, and sellers are more than willing to throw in extras and even pay for closing costs to get a home sold. That was the case with a Florida home in Naples Beach that was originally listed for $410,000, but just six months later, seller negotiated for a $280,000 sale.

2. The Hottest Locations to Choose From

Looking at a map of South Florida, you'll find its mostly beaches and small inland towns with a few big cities like Tampa, Miami, Ft. Lauderdale and West Palm Beach. Even these major cities have smaller suburbs, but the most common factor is the variety of inventory to choose from. There are new homes, previously built homes and homes in foreclosures. You can just look on Zillow to find at least five properties in any specific area at a low cost. There are a few over 55+ neighborhoods as well as suburbs centered around the top schools in the state. Buying for quality of life is key. It's easy to do with a beach just around the corner.

Another thing to remember is buying for the right location. Over time, the housing market should recover, meaning that real estate usually appreciates 5 percent per year. While you shouldn't buy solely for investment reasons, thinking about appreciation rates and studying the location in South Florida should be a factor in where you choose to a buy a home.

3. Big Deals from Builders

Home builders in South Florida are competing with a lot of inventory. It makes new homes even more affordable. Buying a new home is often the way to go because it will include all new fixtures, high grade materials, energy efficient appliances and a warranty. The new home builders in South Florida have a lot of real estate available. Builders in this area have a lot more riding a new home's sale. They need to save their business, credit and clear out inventory. It's why they are willing to go lower when getting rid of new home properties, and home buyers in this market reap the benefits.

If you want to get right into a new home in South Florida, all you need to do is go in with a preapproval for a mortgage, make a low but quality offer, then walk away and let the builder think about the offer. Usually builders will be more than happy to sell a property at a lower cost because they will get some money back and be able to pay their creditors.

4. Low Mortgage Rates in South Florida

Perhaps one of the best reasons to move to this area is because of the low mortgage rates. They are the lowest that they have been in years. Mortgage terms are also much better for buyers in this area. Rates are made to be more attractive for agencies Freddic Mac and Fannie Mae. In some markets around this part of the state, you can find low mortgage rates for homes priced over $500,000.

Rates have stayed relatively low in multiple areas around South Florida including some of the most highly sought after real estate areas like Naples, West Palm Beach, Ft. Lauderdale, Bradenton, Hollywood and Venice Beach. Earlier this year, rates for 30-year fixed rate mortgages went incredibly low to a 5.25 percent rate according to Freddie Mac. President Obama has also created an economic plan to lower the costs of mortgages for home buyers, but nothing is concrete yet.

Hover, this still means that buyers need good credit, a quality down payment and documentation for your income to qualify for top rates.

5. Florida's Mortgage Credit Certificate Program

The good days of the federal tax credit of up to $8,000 are gone now, but there are still state programs. Florida has a decent MCC program available. The credit offers $2,000 annually to help pay for mortgages. Homeowners can claim up to 50 percent of their paid mortgage interest as a tax credit. In addition, it's not just for first time buyers. Many areas in South Florida also allow for non-first time buyers to also receive this credit as well as eligible veterans who are purchasing a home.

buying a home in South Florida has been considered a luxury, and while the homes and locations are still quite luxurious, it's more affordable than ever to get into a great property at a low rate.