Housing Market In South Florida Ripe For The Picking

 Housing market in South Florida ripe for the picking

By Todd Wilson | September 16, 2020 at 12:05 AM EDT - Updated September 16 at 9:42 AM

Edith Landi and her husband decided to downsize to a smaller home once their kids grew up and moved out. She said the market is hot, even in a time of uncertainty.

"'Sorry, pending. Sorry, under contract. Got a contract an hour ago.' We could be on the road and, 'Sorry, can't see it. Offer was just accepted,'" she said.

In her experience, Edith said if you didn't put in an offer within 48 hours the house was gone.

"Being in a pandemic has brought the interest rates down and actually made things easier for people," she said.

Juan Acevedo is a Realtor. He said Boca Raton is an example of a surging market. Acevedo found single-family homes under $500,000 a hot commodity.

"Those homes in seven days, 42 were under contract, and the first 10 days 53 % were under contract, so those homes are just flying," he said.

Acevedo said half of who's buying may surprise you.

"Right now, 50% of my buyers are actually out of state buyers I'm dealing with," he said.

Ken H. Johnson is a real estate expert at Florida Atlantic University. When the pandemic started, he said, most real estate experts forecasted gloom and doom.

"Those people who are 30-40 are really going out and buying homes at a pace that they haven't been in the past because they have less worry or fear overexposure to COVID-19," he said.

He said low-interest rates are driving much of what you see now.

"When will this slow down? When rates move up, when will rates move? That's hard to say," he said.

Acevedo said if you're looking to buy, first make sure you are preapproved. And if you see a house you like, you may not want to wait to put in a bid.

Should You Buy a House During the Corona-Virus Outbreak?

WRITTEN BY JAYMI NACIRIPOSTED ONFRIDAY, 03 APRIL 2020 05:00

For many of us, the coronavirus pandemic has created a time of great financial uncertainty. For others, it’s potentially a time of great opportunity. Many real estate insiders and experts have been commenting about the opportunities that exist for investors and homebuyers in a market that is ever-changing.

Shark Tank star and real estate icon, Barbara Corcoran, is the latest to weigh in, telling TMZ that, “Now's the time to score a steal,” they said. “She told us buyers who are willing to pay special attention to details can find properties discounted by as much as 25%. She's seen it happen in NYC, and says that kinda deal won't be uncommon due to the harsh economic reality facing millions of Americans. She says if sellers are willing to list right now during a pandemic, it's likely because they're desperate to unload the property. That adds up to great deals...if you're able to buy now.”

So, if you’re looking to make a move right now, what do you need to know and what should you be looking for?

Distressed properties

Yes, it’s crass to say that one person’s loss is another’s gain. But the reality is that some of those whose jobs and/or finances can’t withstand an economic downturn may end up losing their homes. It’s not out of line to think that there is going to be a new wave of foreclosures related to job loss and financial hardship, even with mortgage companies and banks offering assistance. Unemployment will help, as will the government’s economic stimulus package…but, it only provides a small amount of assistance that may cover one month’s mortgage payment or a few bills, and not much else. 

Between the low mortgage rates and the potential for home prices to come back down if there is a glut of distressed properties that hit the market, there could be a good buying window for buyers.

Investment properties

This could also be a good time to consider real estate as an investment tool—especially in light of the recent stock market drop and those low mortgage rates.

“With historic low rates, it is a good time to consider investing in real estate,” Victoria Shtainer, a real estate agent and expert at Compass in New York, told Realtor.com. “Low rates give you more buying power, and we have been negotiating amazing deals for our buyers. Given the current volatility in the stock market, investors are reassessing asset allocations in their portfolio, and considering how real estate may fit into this from an asset allocation standpoint.”

Realtor.com added that buying an investment property “can be a valuable asset and a good way to generate passive income, and it might also provide tax write-offs and incentives that you wouldn’t get on other instruments.”

For a historical perspective on real estate vs. stocks, check out this piece by Bigger Pockets, which provides a ton of data points as well as this nugget: “Throughout modern history, residential real estate has actually boasted an extremely high rate of return with low risk. “

A few things to keep in mind when buying now

Given the current situation around the coronavirus quarantine, the way you buy a home will likely be different. You can’t expect open houses or, in many cases, in-person home tours, right now (Although, you’ll likely walk through a home you wish to purchase with an inspector during your escrow process.). Your escrow timeline may also be impacted.

"I recommend working with your lender early, even before the offer is accepted," Beatrice de Jong, consumer trends expert at Opendoor, told Business Insider. “The home buying process is taking longer than usual, and you could end up waiting around if you don't get a jump start.”

The delay is partially due to the fact that lenders have been inundated with refinancing applications from existing homebuyers, but also because of work-from-home mandates that limit what some of the professionals involved in the process can do. 

“Yes, the influx of refinancing applications has overwhelmed lenders — but that's not the only reason the process is slowing down,” they said. “Many companies' employees are now working from home, which sometimes hinders them from working as quickly. 

That can affect multiple aspects of the escrow process, like the appraisal. “The appraiser physically has to go out to the house...Many of them are actually asking to have quarantine clauses built in,” Andy Taylor, General Manager of Credit Karma Home, told Business Insider. “They want to know that the home they're going to isn't under quarantine because someone there is sick from this virus that's going around.”

How to Buy a House Right Now

How to Buy a House Right Now

WRITTEN BY JAYMI NACIRIPOSTED ONWEDNESDAY, 25 MARCH 2020 05:30

 
 
 

As we navigate the (hopefully temporary) new-world order in an attempt to control and contain the global coronavirus pandemic, the real estate industry is making its own constantly evolving set of adjustments. The industry over the past few weeks has centered around two major themes: 1) Super-low mortgage rates that have created a refinancing boom; 2) And the possibility that the coronavirus will force a widespread pause of mortgage payments. 

These are uncertain times, to be sure. But those same low rates that are driving refis are also attracting homebuyers. “The 30-year fixed mortgage rate hovers above 3 percent, the lowest that it has been in nearly 50 years,” Andrina Valdes, executive sales leader and CEO of Cornerstone Home Lending, Inc., told Apartment Therapy. “The lower the mortgage rate, the lower a monthly mortgage payment is likely to be. So, anyone who’s on the fence and thinking about buying a home could really benefit right now by purchasing at a record-low rate.”

The truth is, there are still homes on the market. There are still people who need to sell. And there are still people who need or want to buy. If you’re one of them, you’re probably wondering how to go about it. iBuyers have largely shut down entirely or shuttered at least temporarily, and several companies, including Keller Williams, have cancelled all open houses, “while smaller brokerages, like the about 100-agent New York-based brokerage Modern Spaces, has closed offices and sales centers, instead offering virtual walk-throughs and tours,” said Yahoo Finance.

So how can you buy something you can’t see? It’s time for technology to take over. “This time the use of technology may have a significant part to play in how the housing market can try and continue in a ‘normal’ fashion,” said Bindi Norwell, chief executive of the Real Estate Institute of New Zealand on One Roof.

That means that your house tour will probably be virtual. Agents are embracing the tech available to them to bring homes to buyers since they can’t bring buyers to homes.  

“As an alternative to in-person viewings, some agents are turning to tech, offering buyers virtual tours,” said the New York Times. “The NYC-based Ideal Properties Group launched a virtual listing viewer called Showings on Demand. 

Individual real estate agents have followed suit. Kendyl Young, Broker/Owner at Glendale DIGGS, just held a Facebook Live Open House for her new restored Post and Beam, mid-century modern listing near Brand Park in Glendale, with plans to do more. “I'll show you around the space and take your direction,” she said on Facebook. “Want me to show you a particular room? I will. Missed the part where I showed off the family room? Tell me—I'll go back. A close up of the super cool family room fireplace wall? I'll get closer. You are the PUPPET MASTER and I am at your direction.”

It’s all part of being able to adapt to clients’ needs during this time. 

“Buying a home will always be a very human experience, but we need to adapt to this crisis,” she told us. “Physical showings are not safe, and we can marry technologies like 3-D scans, Webb meetings, and video conferencing to provide a pretty reasonable virtual experience. We must find ways to serve our clients while staying safe.” 

Elle Jones of Keller Williams’ Harma Real Estate team is showing her new San Fernando Valley, CA listing, among others, via FaceTime. “If you'd like to view a house, I'm happy to go by and do a FaceTime walk through for you,” she posted on Facebook. “If you’d like to see my #Newlisting in #ShermanOaks even better! Let’s get through this together!”

The State of the Florida Real Estate Market In 2020

By

 Guest Contributor

 -

 Mar 2, 2020

Forbes has listed Florida cities, including Jacksonville, Miami, and Orlando among the best bets for real estate investors (2019-2020). Last year the market was exceptionally good and the same is expected in 2020. Florida indeed has one of the most rewarding real estate markets. There is a good reason behind all this. Florida is surrounded by the Gulf of Mexico, Alabama, Georgia, and the Atlantic Ocean. It is an international tourist destination. Its economy is dynamic and diverse. The government of Florida encourages pro-development and pro-business mindsets.  If you are looking to make any investments in the real estate market of Florida, this is the right time. Visit NRIA for better guidance and management of property-related matters.

Real Estate Market

Investors in Florida love its real estate market. According to a recent publication by the World Property Journal, the buying and renting of homes in Florida is in great demand.  Home sales have significantly increased by 11% over the past few months. The experts at Florida Times-Union stated that the real estate market of Florida will keep on growing at a rapid rate in 2020. Two main reasons behind this growth: the local economy is getting stronger and the population is increasing.

Market Stats

Let’s take a look at the key market stats:

• In Florida, median home values have ramped up to 4.1% over the last year. It is estimated to grow by another 3.6% in 2020.
• The median home value is approximately $238,600. Currently, Florida’s real estate market is ranked as “very hot” (As of October 2019).
• In Florida’s market, the median listing price of any house is around $294,900, whereas the median selling price is around $227,500.
• In Florida, 7% of the homes hold a negative equity vs. 8.2% U.S. average.
• In Florida, 1.4% of the homes hold a delinquent mortgage vs. 1.1% nationally.
• Approximately 16.5% of the properties listed for sale in Florida have a price cut during their listing period.
• In Florida, the average period on the real estate market is 83 days.

The key stats for Florida’s real estate market vary by area.  Conduct detailed research on the market by taking into consideration cities, including Miami, Tampa, Orlando, Naples, Tallahassee, and Jacksonville.

Renters’ Market

In Florida, the renter market is also very strong. The University of Central Florida has predicted that “single-family housing will remain in short supply despite housing starts accelerating.” This means there is going to be an in equilibrium, i.e., demand > supply.

Market Stats

The key market stats for a renters’ market are given below:

• Rental amounts have increased by approximately 30% since 2011.
• The average rent list price per square foot is $1.36.
• The median rent is $1,714/month in Florida vs. the median rent is $1,588/month in U.S.
• The median monthly rents by bedroom in Florida range from $1,494 for a studio unit up to $2,135 for a four-bedroom house.
• The percentage of rental households keeps on growing. Homeownership in Florida is 65.5%, the lowest level since 1990.
• Homeownership rates in Miami, Tampa, and Orlando have all fallen below 50% – people are renting rather than owning places.

What’s Ahead for Florida Real Estate?

According to Miami Agent Magazine, the real estate market in Florida is going to be a key factor for its economic growth. Let’s recap how 2019 ended for the market and what’s expected for 2020.

Florida Realtor’s chief economist, Brad O’Connor, stated that, “unexpectedly low mortgage rates were the big story in last year’s housing market, leading to more home sales across Florida than originally anticipated.

“Meanwhile, home prices continued to march upward throughout the year, increasing affordability challenges in several markets across the state. The inventory of homes for sale remains low, and builders are still unable to satisfy the demand driven by Florida’s strong, vibrant economy.

“Primary focus of Florida Real Estate Trends 2020 will be to explore which of these trends will continue throughout the next 12 months.”

10 Reasons To Buy Investment Properties In Cape Coral, FL

Should you buy investment properties in Cape Coral, FL? We’ll focus on practical reasons you’d want to invest in the Cape Coral real estate market, rather than the generic platitudes of “great atmosphere” and “you’ll love their restaurants.”

1. Cape Coral Is Proportionally Large Student Market

Florida Southwestern State College is located near downtown Cape Coral. Edison State College is located in town. The city is within easy commuting distance of Florida Gulf Coast University and Ave Maria University. This provides a relatively large student market to cater to. However, you don’t see the same fluctuations in the housing market that you would if the only major college in town becomes less popular.

2. The Tourist Market

The Cape Coral area is so popular with tourists that they’re struggling to regulate short term rentals. However, Cape Coral law forbids rentals less than 7 days, though the area is popular with seasonal renters like snowbirds and longer term rentals to them is certainly legal. The Cape Coral real estate market is particularly attractive to those who love the ocean and don’t want to live in a dense downtown.

3. The Supply-Demand Curve

We’ve already mentioned that the city of Cape Coral was a planned community. The strict zoning limits the development of new housing stock. That in turn limits supply though demand is high. That creates faster than average rent increases that yield significant returns for investors.

On the flipside, Cape Coral didn’t build a glut of luxury condos that have caused a several year backlog of such inventory in other housing markets. Because the surrounding area is built up, there isn’t room to build a lot of single family homes that bring down existing home prices, either.

4. The Strong Rental Market

Between tourists, students, snowbirds, seasonal workers and locals who cannot afford to buy a home or condo, the Cape Coral real estate market has a strong market for rentals. However, it isn’t a market that is so hot for rental units that new construction could cause that bubble to burst.

Cape Coral has roughly a third of its population renting, a rate higher than suburbs but lower than Fort Myers proper. Rental rates won’t go down in Cape Coral as they might in Fort Myers due to redevelopment there. Nor will they be able to buy a house in the suburbs; nearly half of all renters spend more than a third of their income on housing.

5. The Likely Growth of the Rental Market

Pay scales in Cape Coral haven’t kept up with the double digit rent increases. That is in part because the large student market isn’t very sensitive to rent increases, and it is in part because they provide cheap labor that keeps wages from going up. The movement of Fort Myers residents to the relatively affordable area, too, drives up rents.

That means that the number of renters in the Cape Coral real estate market will go up while supply won’t increase the return on investment for those who invest in this housing market today. That is why rents in the Cape Coral zip code are expected to hit $1500 a month though the median income is around $50,000 a year.

6. Cape Coral Is Affordable by Local Standards

Cape Coral is affordable to renters and investors alike by Fort Myers standards. The average rent for a Fort Myers apartment is $1200 a month. A studio apartment comes in at $750 a month while a one bedroom yields around $1000 or more a month.

Many choose to rent in north Cape Coral and commute to Fort Myers, trading time for money. For investors looking at buying real estate in Florida, the $250,000 median price tag is certainly better than the much higher bill you’d get if you tried to invest in Miami.

7. The Hidden Buying Opportunities

The large number of snowbirds who visit Cape Coral seasonably provides a better opportunity for investors in the Cape Coral real estate market. Do your research, and you could buy a home from a snowbird that is going to stop traveling, whether staying home in Quebec or moving into a Miami nursing home. This demographic is notable for the number of luxury condos they hold onto.

8. When the Market Is Low, It Is Really Low

Florida in general has a strong real estate market because of its economic growth. Florida, like Texas, is attracting people from New York, California and the Rust Belt with the beautiful combination of low taxes, high employment rates and decent cost of living. Florida, unlike Texas, sees far more radical swings in property values, and it isn’t just due to the hurricanes. When Florida’s real estate market is down, it crashes.

That provides an excellent buying opportunity for those who want to invest in the Cape Coral real estate market. The inevitable upswing will yield a significant return on investment in the Cape Coral housing market. If you do want to fix and flip, the aftermath of a hurricane is a great time to buy. And unlike the Atlantic coast, Cape Coral isn’t hit with hurricanes as often. That means the Cape Coral housing market will come with lower insurance costs than Miami, too.

9. Florida Has Low Taxes in General

Florida doesn’t have a state income tax. If you shield rental real estate by holding them in a corporation, then the corporation will pay modest income taxes. Florida’s property tax rate is 1.1% of assessed value, a little less than the national average of 1.2%. City and county property taxes are on top of that. The Cape Coral property tax rate is nearly $7 per $1000 per property value. And the city is discussing lowering its property tax rate.

10. Florida Is Landlord Friendly

Florida is a landlord friendly state. For example, there is no rent control. Security deposits have no limit on how high they can be. If the rent is overdue, state laws say they only need three days’ notice to be evicted. If they’ve intentionally damaged the property, you can give them an unconditional 7 day quit notice. The same is true for repeated lesser lease violations, though the eviction in that case requires going through the court system. This makes the Cape Coral housing market a good option for those who want to invest in waterfront property over Maryland or Hawaii.

Cape Coral Real Estate Investment: Summary

If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the hottest real estate markets. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. The Cape Coral real estate market offers strong yields and nearly certain growth in property values without the wild swings and degree of risk Miami real estate market has.

Why is Cape coral one of the best markets for real estate investment?

• Diverse economy, and stable market.
• Home to 32 Fortune 500 companies.
• Over 50% of the population rents.
• Newly built SFD and duplex properties.
• Solid blue-collar areas with high rents.
• High private sector employment.
• Top 10 MSA for Fastest Job Growth (Bloomberg, Aug 2016)

Florida Home For Sale | Prime Gulf of Mexico Access | Water Enthusiast's Dream Home

2956 Buttonwood Key Ct, Saint James City, FL

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You MUST SEE this Southwest Florida prime gulf access water enthusiast's dream home! You can navigate the globe from this home. Located minutes from the Gulf Of Mexico. A true fisherman's dream getaway, and a good investment property for rental revenue! Minutes from the beaches of Sanibel and Captiva. No bridges, deep canal, 2 boat lifts, one covered with a new metal roof. 2 Large bedrooms (Master and the 2nd Front Room) and 2 smaller bedrooms, overlooking the canals where we see Manatees and Dolphins daily! Large open living area layout overlooking the waterfront canal, with a beautiful kitchen including a large island, great for the chef in the family. Central vacuum and hurricane shutters. The upstairs screened in outdoor porch with Plexiglas windows has an incredible view of the intersecting canals and with steps leading to the downstairs screened porch. The 1st Floor is comprised of 2 bays, one that is over 50 feet deep and the other that is 42 feet deep, including a sizable workshop area with 9' ceilings. The neighborhood is really beautiful and the serenity of island life living hard to not find intoxicating! Call or text me for your showing appointment.

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