Most of the research I am finding predicts SW Florida will experience the largest exchange of money in its history over the next few years. There are many factors contributing to this economic growth but there are two main factors affecting Real Estate. The first is the next round of short sales. With government intervention, financial institutions will be more likely to short sale properties rather than foreclose on them. The other factor will be the large migration of Baby Boomers to Florida. This generation of retirees grew up with the mindset ” work hard and then retire to Florida” and they are starting to arrive.
The following trends will be seen in 2014 in SW Florida:
Land is a commodity that can not be created. What we have is all we get. Developers have realized the Baby Boomer migration has started and are purchasing large tracts of vacant land for development. In 2013, the largest Real Estate transaction in SW Florida was undeveloped acreage purchased by a Canadian Developer. Smaller Investors are purchasing Single Family Residential lots and holding them while prices continue to rise.
Again this relates directly to the Boomer migration. Retirees are selling their present homes and now want their Dream Retirement home. They are not interested in buying an existing home and renovation. Instead, they are working with Builders to design and build their personally designed Dream Home. They are sizing down and building houses designed for entertaining and relaxing. According to friends in the Building Industry, the number of New Home permits has risen significantly over the past 18 months.
In addition to new construction, there will be 3 significant trends in Residential Real Estate I will mention here but look for more details in the near future.
- Vacation homes
- Multifamily units
- Student Housing
There are 2 trends I predict that will see significant changes. Again, I will explore these further in future blogs.
- Office space
- Condo Warehouses
- Self storage
Property prices and interest rates are still at historic lows. Both allow for New Investors and Experienced Investors to get into the fast growing SW Florida Real Estate Market. Are you going to take action now or will you be one of the “woulda, shoulda, coulda” people who miss the chance?
Broker/Owner, Investment Property Consultant
Real Estate Solutions of SWFL, LLC