Photo by Spencer Watson on Unsplash
The overall Florida real estate market steadily remained a seller’s market through 2019 and is poised to remain so, at least for the early portion of 2020. Yet, for investors looking to purchase in South Florida, the local market is currently primed for opportunities.
Investors flocking to the southern Florida region found many untapped markets over the past year. It’s anticipated this trend will continue – at least in the immediate future. Since the buyer’s market was tight due to low inventory, investors used some out of the box thinking to recognize ways to utilize or reinvent property. These untapped markets have led to a new type of real estate boom in South Florida.
For instance, developers spent 2019 identifying forgotten or unexciting areas and transforming them into new office, dining and retail spaces. They also sought out multifamily homes to renovate and rent out, identifying properties in the big-city vicinity (i.e. Miami), including its villages and suburbs. With the work, live and play real estate trend heavily entrenched across the U.S., coupled with a socialization theme, this type of investment fits nicely into market demands. This is especially true as Millennials continue to be a driving force in many real estate markets.
According to a report by the Miami Herald, many Northeastern U.S. investors eagerly seek to buy properties in the South because of lower taxes. As high taxes in the Northeastern U.S. continue to persist, investors tend to look outside the region for opportunities.
With single-family properties still in such high demand, buyers are currently looking at previously ignored luxe properties – especially condos. With sellers lowering their prices to appeal to buyers, this market saw a 4.1% uptick in sales year-over-year, reported the Herald. It’s anticipated this is not a short-term trend, but a longer arc that can be expected to continue.
In October, Realtor.com published a list of the top 10 U.S. markets for house flipping. Three Florida cities made the list, more than any other state. Miami ranked #3 with 17% of investment property sales, Tampa landed a #4 position with 16.2% of investment property sales, and Orlando checked in at #8 with 15.1% of investment property sales. Houses in all three cities, on average, ranged between $230,000 - $299,000.
If you’re looking for real estate investment opportunities, South Florida may be a good avenue to pursue. Despite slow-downs in other U.S. cities, properties in southern Florida are still moving relatively fast. This will likely increase if and when the market shifts to a buyer’s market.
