Mayr cites two reasons for Germans’ abstention.

“One is economic. I have mainly investors, not second-home or first-home buyers,” he says. “And these clients are looking for profits. In earlier years, I could promise them 7 percent net. But official prices have gone up, and expenses—mainly property taxes and insurance—have risen disproportionately. So the profits aren’t right anymore. Also, the overall sense of insecurity about the U.S. [real estate] market is affecting German buyers. The second reason is a general anti-American sentiment caused by the Iraq war and stricter immigration practices. There’s little interest in Germany in doing anything here. In the old days, going to Florida was the fashionable thing to do. That image is totally gone.”

Over the past few years, Mayr has put his money into developments in Costa Rica, a market he sees as the next frontier. Mayr is jumping on a trend going against Florida, once a darling of European and Canadian buyers: Foreign—and, for that matter, U.S.—real estate investors are going global. When wooing British buyers, for instance, businesspeople selling Florida real estate must now not only compete with long-standing investment home markets such as France and Spain, but with a fast-growing number of low-priced newcomers such as Bulgaria, Morocco, the Dominican Republic, Mexico and Costa Rica.

“The British buyer has got the world at their fingertips,” says Nick Marr. “Spain and France are established markets. Because they’re nearby, accessibility is not an issue. Last year, everything was Bulgaria. You can find a studio there for as little as 35,000 British pounds. In Brazil, you can buy a sizable chunk of land for 6,000 pounds.”

Foreign investors who are still interested in Florida seem to be seeking better deals in smaller and more affordable Florida cities such as Fort Walton Beach and Melbourne, according to a survey compiled by the National Association of Realtors. Nearly one-quarter of international buyers in Florida in 2006 bought real estate in areas such as the Panhandle and Middle Atlantic towns, outside the larger metropolitan statistical areas. As a result, most metropolitan areas in Florida saw slight drops of their share of foreign buyers. (The exception was Tampa-St. Petersburg, which increased slightly.)

Despite all these grim statistics, anecdotal evidence in late 2007 hinted at a rise in foreign buying, especially among British investors.

“This is a very busy time for our company”, says Lee Weaver, owner of Kissimmee-based British Home Loans Florida. “Sales inquiries are reaching the record numbers of three years ago, the only difference being there is now inventory available to meet that demand.”

There also seems to be a slight German resurgence. In 2006, 14 percent of all foreign buyers in Sarasota-Bradenton were Germans, more than twice as high as their 6 percent share of foreign-owned properties in the area.

Finally, there has been a surge of investors who buy wholesale, trying to turn a quick British pound or Euro on distressed Florida properties.

Pointon’s Changemaker Property Ltd. is a vehicle for such investors. His company serves as a pool and agent for a couple hundred cash-rich and time-starved investors. Besides buying and selling single-family homes in Florida subdivisions through regular retail channels, Changemaker is also active in what Pointon calls the wholesale market. The fund flipped at least 200 U.S. homes in 2006, mainly in the Tampa Bay area, according to Pointon. He has recently worked with Pat Tan of Keller William Realty in Sarasota to identify suitable properties.

“It’s growing,” Pointon says. “It’s a good way for many investors to turn a profit faster.”

Says Marr: “Florida is not over. Florida has a history; it’s not a new market. It’s not outrageously wild or scandalous. The legal system is very good, and the real estate industry is very regulated, which is very good. Obviously, you have a constant tourist market. And you have a good rental market.”

Still, real estate brokers and sellers shouldn’t be popping any champagne bottles yet.

The British real estate market is showing signs of distress—including faltering mortgage banks, large inventories and dropping prices. Most British investors are borrowing on equity from their British homes to buy abroad. And that makes it unlikely the British buying boom will continue unfettered.

The larger liquidity crisis also reduces borrowing opportunities for British buyers. On Oct. 18, GE Money’s British Mortgages Abroad unit, the most popular mortgage lender with British homebuyers in Florida, stopped accepting mortgage applications.