This past year as the coronavirus impacted the world and the real estate market, we saw a lot of movement that stimulated families moving to more desirable residential areas or regions where they knew they could work remote and have the best of both worlds. Florida has seen the biggest influx of buyers and sellers. The demand still continues to happen at a rapid pace in 2021.
The National Association of Realtors Research Group reported in January 2021 there is “stronger investor interest for multifamily, land and industrial properties than for retail, hotels and office properties.” As land is continuing to grow at the highest rate of 5%, “the strongest expected increases in sales are residential, industrial, and ranch lands.” Florida has several emerging trends with the most impact on the local real estate market. U.S. housing prices expected to rise by 8% in 2021
Rising prices are not scaring away buyers, why you ask? Just look at some of the recent reports which show that buyers are willing to pay for bigger homes, better neighborhoods and even schools aren't impacting their decisions when many have turned to remote learning or commuting to private schools.
In November 2020 the average rate for a 15 yr fixed-rate mortgage plummeted to only 2.31%. This is rate is the lowest it has been in 30 years! As of April 2021 it currently is at 2.56%. The NAR predicts that U.S. housing prices will rise 8% this year and 5.5% in 2022.
With more high-end buyers and the demand for luxury homes increases it could keep driving prices up and up. The inventory has been scarce and the demand greater than ever before. When something comes on the market that is unique every buyer is ready to pay top dollar the day the sign goes in the yard. Construction costs are not helping either with lumber prices rocketing sky-high.
The real estate market here in Southern Florida keeps making headlines and will go on making headlines as there's no sign in the near future of it ever stopping any of these trends. This market is fast and not for the faint of heart. Those who look to make huge gains with investments or buying their dream home know anyone selling a dream home would wait until right now to sell it. These people who throw in now are the ones who are winning and the pay off can be huge. Investors and developers are looking to capitalize on these expected big wins and it's all exciting to watch.
Contact Million Dollar Florida Team to get in on this exciting market and see how you can benefit from these and other real estate trends this year and beyond. Call 239-339-7986 or email us at email@example.com