Forget ‘improving’ or ‘rebound’ – ‘Florida market is on fire’

Forget ‘improving’ or ‘rebound’ – ‘Florida market is on fire’ Florida Pool

Daily we receive articles of interest from Florida Realtors® and this one certainly caught our attention.

Lesley Deutch, senior vice president at John Burns Real Estate Consulting, said the “Florida market is on fire” in her latest update on the state’s housing market after having traveled the state of Florida recently and visited more than 20 communities. While recovery reports differ between Florida cities and urban areas, she reports five major trends:

1. Land prices. While the price of land continues to rise quickly statewide, Orlando feels the most pressure. Deutch says she saw some submarkets where “land and finished lot prices have now surpassed peak levels.” In Orlando, she sees developers buying raw land “just to gain a position and market share.”

2. Home prices. Some communities, such as Orlando and Naples, are seeing 1- to 2-percent new-home price increases monthly, Deutch says. The hallmarks of a seller’s market have also returned, such as lotteries. She expects a 2013 price increase of at least 10 percent in many Florida markets.

3. 55-plus market. Deutch reports a 20- to 25-percent jump in potential buyers interested in active adult living, according to builders in Southwest Florida. She also notes a boost in customer traffic in second- and third-tier markets.

4. Foreign buyers. It’s more than Miami, Deutch says. While in Orlando, she visited a sales office that had three active buyers: One from Brazil, one from Germany and one from China.

5. Foreclosures. While the state has a notoriously long foreclosure process, Deutch says banks are slowly releasing foreclosures. But investors continue to buy new foreclosures shortly after they hit the market.

Most of these 5 issues have been covered by The PURTEE Team in recent blogs.  I was just having a conversation yesterday with a builder who was complaining about land prices being too high.  It reminds me of conversations I had in late 2011 with buyers of beach property.  Those buyers listened to media doldrums even as we realtors saw the turn in the market.  Many sat on the sideline and missed golden opportunities to own premium real estate at a fraction of their former value!  She is right about the foreclosures, too. We see them gobbled up quickly as they hit the market.

There is an appetite out there for Florida property and it is even stronger with the relentless snow and cold weather the northern states have suffered this early spring… as we have enjoyed beautiful temperate climates.  Do you agree the Florida market is on fire? You should!  Use a professional to help you understand a good value in today’s market here in Tampa Bay. Contact us today.

Unique Mortgage Strategy For Baby Boomers Seeking Florida Lifestyle Retirement

A recent article in the Washington Post talked about a new offering of 5 or 7 year fixed rate mortgages.  This was originated at the Health Federal Credit Union in Rockville, Maryland.  In just three months, they have generated over 100 of these mortgages representing over $100 million and an interesting mortgage strategy!

“As baby boomers pay off their first homes, area banks and credit unions say they’re seeing a rise in the number of second-home and vacation property purchases, many of which are being financed with short-term loans.

‘We call it the ‘goodbye mortgage,’ Callis said. ‘People are saying, ‘The house is paid off, the kids’ college is paid off, I really can afford to buy – and pay off – that dream home in Florida, too.’”

With the recent economic struggle, many baby boomers have had to put retirement plans on hold.  As the market finally seems to be recovering, what better time to take advantage of both low interest rates and depressed market pricing.  We are still seeing cash purchases here in Tampa Bay at 58% and yet this option might go far in easing the burden of making an all-cash purchase yet giving a shorter life to the day when this dream home is totally paid off.  This could be a financing product worth keeping an eye on…  The PURTEE Team stays up to date on market conditions and can help you whether considering a purchase or selling your home.  Email us at info@floridagulfproperty.com

Social & Economic Implications Of An Aging Population

We see it every day… older Americans are very different from their predecessors: they live longer, are more educated and fewer are disabled or live in poverty. And baby boomers, the first of whom celebrate their 60th birthdays this year, redefine what it means to grow older in America.

I have gathered some key statisics in regards to our aging population… here are some:
1. The U.S. population age 65 and over is expected to double within the next 21 years. By 2030, almost one out of five Americans (72 million people) will be age 65 or older. At that time, those age 85 and older will be the fastest-growing segment of the population.

2. Older Americans are healthier than seniors of previous generations, though many are disabled and suffer from chronic conditions.

3. Higher levels of education — which are linked to better health, higher income and a higher standard of living in retirement — will continue to increase among people age 65 and older.

4. As the United States grows more diverse so does the population age 65 and older. In 2003, older Americans were 83 percent non-Hispanic white, 8 percent black, 6 percent Hispanic and 3 percent Asian. By 2030, an estimated 72 percent of older Americans will be non-Hispanic white, 11 percent Hispanic, 10 percent black and 5 percent Asian.

5. Despite the economic downturn, the population of affluent Americans (those with household income and income producing assets (IPA) of $100,000+) has grown and now makes up the top 19% of all US households, according to a Nielsen Company analysis. “There are more higher-earning Americans than ever, signaling a growing opportunity for many business sectors to capitalize on reaching this market. This group controls $22 trillion in assets.”

To relate these statistics to Florida real estate makes sense. An aging population of baby boomers just now moving into their 60’s have many years left and all indications are that we will see an active aging population unlike any before. Florida is still the number 1 destination for retirement with its moderate climate and active lifestyle. As the current economy may have put early retirement plans on hold for many, some forward thinking buyers are taking advantage of the market value today to ensure they have the property they want in the future (without paying a premium as the market rebounds and appreciates). Because the area is also a strong vacation destination, rental income potential is an attractive option to defer some of those carrying costs. Vacation Rental Investment