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Current buyers are old enough to remember the rise of the real estate bubble before 2008. The rabid approach to real estate collapsed dramatically, which turned out to be just another symptom of the Great Recession which impacted politics, society and families even today.
Today, house prices are up 40% from 2007. With such a big jump, even the government is trying to intervene. There is a perfect storm of factors contributing to this leap – a pandemic that has blurred the typical dispersion of the population, an entire generation of millennials who have postponed home buying until this point, and limited construction. new houses – that the government is trying to induce new construction.
However, if you are looking for a home, there are still some great options available despite the rising prices. Real estate is an investment, which tends to increase in value over the years if you hang in there long enough.
And what better place to invest than Florida? That’s why we’ve put together a Florida real estate guide, filled with expert predictions on how the market will go through 2021.
- Florida’s popularity
For decades, Florida has been very popular with snowbirds. People spend part of their year in Florida, and it has always been a home for seniors who choose to live there year round.
The population is expected to increase sharply in the coming years. After nearly two years in some form of danger of a global pandemic, people are ready to go out. What better place to do this than Florida?
With world-class arts, culture and food in cities like Miami and Tallahassee, this is the perfect place to go out and discover things you’ve missed. Let’s not forget the beaches either.
All of these factors, along with the strong job market, will cause Florida’s population to grow steadily. When it comes to real estate, this means there will be stiff competition for prime locations.
Finding a beautiful old Florida home with classic details will be more impossible than ever. If you have the money and the patience, you can. But be prepared to pay a lot more than you normally would.
With the increase in population, efforts are being made to stimulate the construction industry. If these efforts are successful, it could mean that more new homes will be on the market sooner rather than later.
With the current Florida real estate market, all of your options will require a lot of patience.
- Holiday rents
If you are looking to invest in Florida real estate, now is the time. But what if the timing isn’t right in your personal or professional life? Florida real estate can still work for you.
With the factors mentioned above, people will still be coming to Florida in droves, even if they are not looking to relocate. Maybe they’re just visiting to plan a future move, visit family, or take a vacation near world-class restaurants and beaches.
Revenue from vacation rentals is expected to reach $ 88 billion by 2023. With the advent of “the journey of revenge,” that number could be even higher than expected.
If you are buying real estate in Florida and are preparing to rent that home to others, you might consider a significant source of income. Then when you’re finally ready to move into this home yourself, you’ll be good to go!
- Buyers have an advantage
Most experts agree: Right now, real estate trends in Florida dictate that it is a seller’s market. Homeowners can sell their property for a much higher price than what they originally bought it for.
However, in this case, the Federal Reserve is on your side. Due to the deterioration of the economy caused by the pandemic, the Reserve has taken steps to try to support it. One of those steps was to secure low interest rates when taking out a homeowner’s loan.
Right now, interest rates are pretty low. This is a huge plus for buyers who want a low rate now, especially if you have found your dream home and want to stay there for the foreseeable future.
- Speed ​​is your friend
When investing in real estate, playing your cards right is crucial. Many buyers who have decades of experience with Florida real estate trends know how to play the wait game.
In the past, the wait game was ideal for savvy buyers who could. If they’re in no rush to leave their current location, being patient can save them thousands of dollars.
However, this real estate bubble is different from those that preceded it. Experts, especially those who predicted the 2008 crash, are not predicting a similar catastrophe.
The world of lending and buying is different from what it was before 2008. Wall Street has learned the lesson, as have many buyers. In the years leading up to the Great Recession, loans were free.
It was so easy for many people to buy homes, even those who weren’t good candidates for a bank to take risks. Now, of course, there are still programs for new owners. But the proper safeguards are in place to prevent disaster.
As prices go down further, expect to wait years. And even then, the supply might not be able to meet the demand as it has in years past.
Investing in Florida real estate
When investing in Florida real estate, remember that you are playing a long game. There is no fast track to homeownership in today’s market.
However, when you decide to pull the trigger and invest in Florida real estate, the time and money are well worth it. This type of investment can stay with your family for generations.
The housing market also has a strong history of returning value on investments over time, rather than depreciating. In a popular state like Florida, this will continue to be true.
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