The Florida real estate market continues to be an investment hot spot, especially for international and out-of-state buyers.
In today’s article we will continue our analysis of the Florida region, compare it to the national average, project possible short and long range property investment forecasts and give you 5 reasons why buying NOW may be your best option.
Florida’s housing recovery is showing greater momentum than could be expected, considering the wild events of 2020 and severe downturn this past spring. As we outlined in last month’s article, the market started displaying encouraging numbers in June and especially July and August, and so far September has stayed strong.
Comparing Florida to the national average
Higher monthly rental prices
Higher percentage of renters
More buyers from out of state/ country.
South Florida features a unique property/ housing profile. 2 aspects stand out:
Higher than national average renters;
Higher ownership from out of state and country.
These dynamics may well stem from the confluence of positive indicators such as: good access to education, high tourism, landlord friendly laws, proximity to other countries, multi-culturalism, as well as a well rounded economy.
Simply put, Florida boasts an environment that is conducive for high property prices, which then creates a high rental market, whether it be daily or yearly, and workers, visitors or students.
It’s most likely that this economic demographic and investment advantage will continue as long as the economy and community health fully recover.
Based on the trends and data, the short term outlook should see the hot trend continue: high demand to buy and rent. At some point, however, things are bound to change. When exactly this will happen will be due to the combination of many factors such as the recovering economy, continued effects of COVID-19, a potential tech bubble crash, and the upcoming election.
Specifically what should be looked at now and into the next few months, is decrease in available home supply as the market continues to display high home sales.
As we approach the election and new year, there are so many factors and possible outcomes that it is hard if not impossible to project accurately.
However, looking at the current trend and investment advantage we can assume 3 things, at least for the Florida region.
Landlord friendly environment
High renter percentage
High demand for property from buyers and renters alike.
If you’re buying for rental, you likely want the assurance that there will be a stable rental market for at least 15 years, and hopefully more, assuming your investment is returning at 7% per year. And while buying for property appreciation, you are betting that the area will be booming or at least stable when you choose to sell your investment.
The data from Florida shows that compared to the national average, the market is highly favorable for residential owners/ landlords. The downside of the current Florida market is that inventory is drying up as the market remains hot, which could drive prices even higher. HOWEVER, this could also lead to even more of the population renting.
So, if you are looking to buy to rent, the time is now: to take advantage of the lower buying price, extremely low mortgage rate, and stable long term rental market.
Why Invest in Realty Now:
High rental market
Inventory drying up
Property prices increasing
More appreciation potential when starting now
Historic low mortgage rates
Another key reason to invest in the Florida market now has to do with your other investments.