FLORIDA REAL ESTATE NEWS - JULY 2006

Florida Will Remain America's Number 1 Destination

David Lereah, Chief Economist of the National Association of Realtors (NAR) stated, “Florida will remain America’s No. 1 destination for the next 10 years, at least”. A major reason for the continuing strong showing for Florida’s real estate market is the demand from overseas buyers. Florida has the highest share of real estate buyers from overseas of any state, 15 per cent on average. Miami-Dade and Broward counties combined rely even more on foreign buyers, 30 percent, according to the Realtor's Association study tracking home sales in the 12 months ending May last year. These foreign buyers will keep propping up South Florida’s real estate market, lured by the U.S. import-export explosion, the high value of the Euro compared with the dollar and the safety of US. investments amid turmoil in Latin America. With the addition of a tremendous amount of “baby boomers” still viewing South Florida as their ultimate destination and the strong job creation, which consistently leads the nation, the future of South Florida’s real estate market remains very bullish.

Real Estate Investors Reap Rewards

Those real estate investors that bought investment properties over the last few years are poised to reap the rewards of not only high appreciation rates, but rapidly raising rent rates in South Florida. Apartment rents are expected to see their largest increase, in six years, this year, according to a published report. USA Today reports that the National Association of Realtors is forecasting a 5.3 percent increase in rents this year, which is about double last year’s increase. The paper reports it would be the largest increase in rents since 2000. One out of three apartment buildings sold last year were converted into condos for sale, the paper reports, and that took 191,400 apartments off the market, according to the Realtors. In addition, the number of new apartment buildings under construction is down this year. With these factors in mind, many South Florida real estate investors are in a position to expand their portfolio’s with the purchase of even more units. With great buying opportunities and a very strong and tight rental market, investors are taking advantage of the many condo conversions that offer excellent incentives in the tri-county area.

Back to top