Across the United States the housing bubble and its subsequent burst have made news. Even as that crisis has slowly edged its way into recovery, investors and hopeful homeowners both have watched market trends to discover when the time is right to invest. Florida too had watched their real estate market begin to crumble, but for the last couple of years Florida has rebounded as other states have struggled.
Who is Buying
Real Estate Conditions in Florida have seen a remarkable recovery over the last few years. Real Estate Prices have continued to rise and the number of sales are on the way up as well. The market appears to be best for investors however, as nearly half of the homes sold in recent months have been to investors. International investors are currently some of the most aggressive buyers in the area.
Many of these sales are cash sales as the prices are still affordable for most active investors. Real Estate Investments are considered a safe bet as families are also ready and actively looking, often finding they are being outbid by those who are looking for homes to profit from. This outbidding does create the risk that some families are unable to absorb the Price of family houses.
Current Real Estate prices in south florida have risen over 12 percent from the previous year. Most experts agree that they will continue to rise over the next year by approximately five percent. This is attributed to the competition between investors as well as from family home buyers.
There are some serious concerns that these steep rises could become unsustainable, as those families who need homes are priced out of the market and investors themselves are unable to turn any further profit. This situation could result in a regional bubble, much like the one the country as a whole has been fighting its way back from.
The saving grace of Florida will always be its climate which continues to draw unhappy northerners to its sunny shores. It has also become a state that is continuing to be known for its growing business climate as well. Companies are expanding and relocating into cities like Miami. This growth has fueled the need for more housing of all types and sizes throughout the area and in that respect shows no sign of diminishing.
Florida is also considered a very low-tax state. This has helped it to see a migration of people from all over the United States who are happy to pay for a little more for a home in order to see a reduction in the fees that have been paying in their tax-heavy home states.
While it is impossible to know exactly when the price of housing will level off, it is important to note that the increases in price have been slowing. This slowdown has been in family home only though as luxury homes have continued to increase at astounding levels. Many experts agree that it is this luxury market which may be where investors will want to focus their attention.