South Florida has never been more attractive for real estate investments
Known as a stomping ground for second homes and condos, South Florida is susceptible to boom and bust cycles due to a quest for investment opportunities. When you add an ever-increasing mix of transplants and baby-boomers, you’ll find some risks within the housing market. However, it seems like the rewards are outweighing the risk for the foreseeable future. Here’s why:
South Florida’s economy is blooming
Florida’s economy, as measured by Real Gross State Product (RGSP), is predicted to expand at an average annual rate of 2.9 percent from 2016 to 2019. If this forecast holds true, the RGSP growth in Florida will grow at a faster pace than what is currently projected for the entire United States over the next four years. This means that by 2019, the size of Florida’s economy is projected at nearly $1.1 trillion. At this level, Florida’s economy would rank 16th largest in the world. With these rates, south Florida residents would see more disposable income and the housing market would see more demand for real estate investment.
Increased demand for renting
Since rental prices held up better than homes did during the recession, buying property to rent out is a very attractive possibility. In Miami, approximately two-thirds of the residents rent. This allots enormous opportunity for those looking to invest in property to get a return on their investment, especially in Miami and surrounding areas.
Now is the best opportunity to buy
If you’re planning on buying a home – do it now. The economy is trending upward, and prices will do the same over the next few years. Currently, worldwide economic concerns are keeping mortgage rates low, but rates won’t stay at bay for too long. Additionally, the supply for single-family homes and condominiums is increasing, making sellers more willing to negotiate.
This past February, the number of single-family homes and condos for sale jumped 12 percent in Palm Beach County and four percent in Broward and Miami-Dade counties. Within the same period, more than a quarter of all Broward homes saw a price reduction.
Real estate possibilities are experiencing a wonderful upswing. If you’re interested in buying a home or condominium in Palm Beach, Broward, and Miami-Dade counties, time is your greatest asset. Take advantage of the future success of South Florida by investing while prices and rates are still low.
If you are looking to buy or sell, or if you have any questions about current home and condo prices, contact the professionals at Tim Singer and Associates today.