RE/MAX Elite

2020 South Florida Market Update: Investment

by Deborah Tomczak 07/12/2020

Photo by Spencer Watson on Unsplash

The overall Florida real estate market steadily remained a seller’s market through 2019 and is poised to remain so, at least for the early portion of 2020.  Yet, for investors looking to purchase in South Florida, the local market is currently primed for opportunities.

Investors Identifying Untapped Markets

Investors flocking to the southern Florida region found many untapped markets over the past year. It’s anticipated this trend will continue – at least in the immediate future. Since the buyer’s market was tight due to low inventory, investors used some out of the box thinking to recognize ways to utilize or reinvent property. These untapped markets have led to a new type of real estate boom in South Florida.

For instance, developers spent 2019 identifying forgotten or unexciting areas and transforming them into new office, dining and retail spaces. They also sought out multifamily homes to renovate and rent out, identifying properties in the big-city vicinity (i.e. Miami), including its villages and suburbs. With the work, live and play real estate trend heavily entrenched across the U.S., coupled with a socialization theme, this type of investment fits nicely into market demands. This is especially true as Millennials continue to be a driving force in many real estate markets.

New Appeal of the Luxury Market

According to a report by the Miami Herald, many Northeastern U.S. investors eagerly seek to buy properties in the South because of lower taxes. As high taxes in the Northeastern U.S. continue to persist, investors tend to look outside the region for opportunities.

With single-family properties still in such high demand, buyers are currently looking at previously ignored luxe properties – especially condos. With sellers lowering their prices to appeal to buyers, this market saw a 4.1% uptick in sales year-over-year, reported the Herald. It’s anticipated this is not a short-term trend, but a longer arc that can be expected to continue.

Flipping Activity in Florida

In October, Realtor.com published a list of the top 10 U.S. markets for house flipping. Three Florida cities made the list, more than any other state. Miami ranked #3 with 17% of investment property sales, Tampa landed a #4 position with 16.2% of investment property sales, and Orlando checked in at #8 with 15.1% of investment property sales. Houses in all three cities, on average, ranged between $230,000 - $299,000.

If you’re looking for real estate investment opportunities, South Florida may be a good avenue to pursue. Despite slow-downs in other U.S. cities, properties in southern Florida are still moving relatively fast. This will likely increase if and when the market shifts to a buyer’s market.

About the Author
Author

Deborah Tomczak

Hello, my name is Deborah Tomczak, One of the Top Selling Real Estate Agents on the Space Coast working with Remax/Elite. 

I specialize in the business of pairing discerning buyers with homes that match their wants and needs, and maximizing profits for people with real estate to sell. My commitment to you is that I will make sure you are communicated with during the entire process to reduce stress and ensure a positive outcome. 

I bring a 25 year corporate career in marketing and advertising to my 19 year real estate business, allowing me to utilize skills and experience to make the best use my clients time and minimize unforeseen challenges that may arise.  

I'd be honored to put my real estate experience to work for you.