How Is the Florida Real Estate Market Like in 2021?
Current homebuyers are old enough to remember the rise in the pre-2008 housing bubble. The maddened handling of real estate collapsed spectacularly, which turned out to be yet another symptom of the Great Recession that continued to affect politics, society and families to this day.
Today real estate prices are 40% higher than they were in 2007. With such a significant increase, even the government is trying to intervene. a whole generation of millennials who have put off home buying until this point and have limited new home construction – that the government is trying to get new construction done.
However, if you are looking for a home, there are still some great options despite the price hike. Real estate is an investment that will grow in value over the years if you hold out long enough.
And where better to invest than Florida? That’s why we’ve put together a guide to Florida real estate that’s full of expert predictions on how the market will change through 2021.
- Florida’s popularity
Florida has been very popular with snowbirds for decades. People spend part of their year in Florida, and it’s always been a hotbed for seniors who live there year-round.
Strong population growth is forecast for the coming years. After nearly two years of some form of global pandemic threat, people are ready to step out. Where better to do that than in Florida?
With world-class art, culture, and fine dining in cities like Miami and Tallahassee, it’s the perfect place to experience things you’ve missed out on. Let’s not forget the beaches either.
All of these factors, in addition to the strong labor market, will lead to steady population growth in Florida. In the real estate sector, this means fierce competition for top locations.
Finding a lovely old Florida home with classic details is going to be more impossible than ever. If you have money and patience, it is possible. But be prepared to pay way more than you would under normal conditions.
As the population increases, efforts are made to stimulate the construction industry. If these efforts are successful, it could mean that more new homes will hit the market sooner rather than later.
With the current Florida housing market, each of your options requires a great deal of patience.
- Holiday apartment
If you are looking to invest in Florida real estate, now is the time. But what if the timing is wrong in your personal or professional life? Florida real estate can still work for you.
With the above factors, people will still flock to Florida even if they don’t want to move. Perhaps they are just visiting to plan a future move, visit family, or take a vacation close to top restaurants and beaches.
Vacation rental income is expected to reach $ 88 billion by 2023. With the advent of “revenge trips”, this number could be even higher than previously expected.
If you are buying Florida real estate and want to rent that home to others, you can look forward to a significant source of income. When you can finally move into this house yourself, everything is ready to go!
- Buyers have an advantage
Most experts agree – right now, Florida real estate trends dictate it is a seller’s market. Homeowners can sell their property for a much higher price than they originally bought.
In this case, however, the Federal Reserve is on your side. Due to the shrinking economy caused by the pandemic, the reserve took steps to prop it up. One of those steps was ensuring low interest rates when taking out a home loan.
Interest rates are currently quite low. This is a great benefit for buyers looking to secure a great deal now, especially if you’ve found your dream home and want to stay there for the foreseeable future.
- Speed is your friend
Getting your cards right is crucial when investing in real estate. Many buyers with decades of experience with Florida real estate trends know the wait and see.
In the past, the waiting game has been great for savvy shoppers who are able to. If you’re in no hurry to leave your current location, patience can save you thousands of dollars.
However, this housing bubble is different from those that preceded it. Experts, especially those who predicted the 2008 crash, do not predict a similar disaster.
The world of lending and buying is a different place than it was before 2008. Wall Street has learned its lesson, and so have many shoppers. In the years leading up to the Great Recession, lending was free.
It was so easy for many people to buy houses, even those who weren’t good candidates for a bank to take a chance. Now, of course, there are still programs for first-time owners. But there are safeguards in place to prevent a disaster.
While prices will come back down, expect to have to wait years. And even then, supply may not be able to meet demand like in previous years.
Invest in Florida real estate
When investing in Florida real estate, remember that you are playing a long game. In today’s marketplace, there is no quick way to get your own home.
However, if you do decide to pull the trigger and start investing in Florida real estate, it will be well worth the time and money. This type of investment can stay in your family for generations.
The housing market also has a long history in which the value of investments retreats over time, rather than depreciating. In a popular state like Florida, this will continue to apply.
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