What Does The South Florida Housing Market Forecast Look Like For 2013 And How Will It Stack Up For Real Estate Investors?
We received a question from Vicky on our real estate global network blog and she ask: “What does the South Florida housing market forecast look like for 2013 and how will it stack up for real estate investors?”
Vicky, an answer is depending on what an investor wants to establish in 2013. In general the real estate investment looks still promising.
The investment market will remain active, while many International buyers compete with Investors to buy South Florida properties. “Cash” is the name of the game and most international buyer pay their purchases with cash and can close quickly.
South Florida Foreclosure and distressed properties will still have a significant role
in the residential market. The bad news for real estate investors are, that real estate pricing has been stabilized and there is no longer a big discount on foreclosure or distressed properties compared to arm’s length residential properties on the market. We have seen in the past that distressed and foreclosure properties had a price cap of 40-60% discount compared to properties with arm’s length sales. This huge price cap and discount can no longer be found. Such properties had in the past multiple offer situation which closed the price cap of discounting foreclosure and distressed sales.
In my opinion the South Florida housing market will benefit from a strong population inflow such as retirees to South Florida and international buyers who snatch up second homes and vacation properties. The strongest international buyers are from Canada, Brazil and Venezuela.
In regards to home prices, they will rise modest. In contrary rent prices have risen to a point that owning has become cheaper than renting in South Florida. If investors buy properties as rental income, they will rent out to tenants in many cases who may not qualify for a mortgage at this time. Times in 2013 will not be hard for landlords, but landlords should not expect higher rental income and should prepare, soon as property appreciation projects higher gains, that renters will buy their own properties.
Great deals can be made by investors buying their properties with cash and anticipate a appreciation gain. This is the time where one can take advantage of the tighten financing market and could be the solutions to tight credit conditions with owner finance, lease –purchases or rent to own options, when reselling their property.
Vicky we hope we have answered your question “What does the South Florida housing market forecast look like for 2013 and how will it stack up for real estate investors?” since we don’t know what you want to achieve in 2013. If you have any further question don’t hesitate to send us a quick email.