"Considering the financial roadblocks that many homebuyers have faced over the past year, the sales activity that we've seen in recent months is encouraging," says Craig Werley, president of Coral Gables-based Focus Real Estate Advisors, which worked with Goodkin on the Downtown Miami study. He notes that increasingly attractive pricing continues to generate demand from buyers and renters.

Goodkin believes that Miami's urban condo market could reach market equilibrium in the next three to four years as existing inventory is absorbed and no new multifamily structures are built. In the short term, he says, the rebound relies on heightened demand for urban living, easing of home financing restrictions, low mortgage interest rates and continued discounts by developers on available units.

Observers say the report brings much-needed certainty back to Miami's condo market. "Until lately, the perception was pretty bleak," says Vanessa Grout, vice president of acquisitions with Miami-based New Valley Realty, which has a keen interest in bulk purchases of local condos.

Grout also tells GlobeSt.com that if the current trend continues, demand will eventually reach the point that development will be encouraged again and minimum unit values will return to replacement cost levels. While the rental market gives life to Downtown Miami condos at present, she says, ownership will become more likely as financing returns.