Looking into the future, most property owners have been asking about the current market conditions and what it means for the future value of their property.
Is it an ok time to buy additional investments?
Will the market crash, dip, or continue to appreciate?
Many of our current clients have reached out asking for guidance and opinions on what the future holds. There’s no doubt about it that many property investors/home owners are aware of how hot the Florida real estate market is whily supply has dwindled down more and more. Off course, many are comparing what they’re seeing now to the market crash of 2008 and are wondering if we may be in a similar scenario.
While it’s of course impossible to predict the future, there’s a few reasons why we don’t feel that’s just the case.
Undoubtedly the 2008 housing crisis was fueled by unqualified home buyers securing risky loans through banks that were ready and willing to lend to almost anyone. Many fell victim to variable rate loans who saw payments increase extensively leaving them unable to make their payments. Property values were skyrocketing as the pool of buyers with their preapproval letters was massive.
But, what’s different about today’s market?
There’s several key factors that are to blame for the current market climate. Lenders are extremely picky still about who they are willing to lend to, so why the increase in price?
Covid is to blame. The acceleration of people moving to Florida has been exacerbated, statistics showing as high as 1,000 per day. Clients are telling us they’re sick of the lockdowns, cold weather, and are ready to move. The ability to work from home has also helped younger families take the plunge to move and keep their current jobs.
The sudden rush of people moving has driven our supply very low, thus quickly increases our prices. This seems to be a trend that will likely continue, and the SWFL area is still affordable for most, especially those coming from higher priced cities up north.
We anticipate seeing healthy appreciation for the time being!