Fort Myers Real Estate
The Inventory Story
Seen as a haven for golf, sunshine and waterfront property, Florida has long been a hot spot for both domestic and international second home buyers. The state has seen the best of times – unprecedented growth in property values, buyers taking advantage of the weak dollar – and the worst of the times – a sudden halt to new construction, distressed properties coming on the market in bulk and property values decreasing rapidly.
“The problem has been that Florida built up inventory at the same time demand was falling” says Gary Young of Universal Realty & development, “The second home market is suffering from excessive inventory, and it will be a good six to nine months before we see significant movement.
Signs of Life
Nonetheless, after several years of serious decline, there are green shoots in some areas with many buyers taking advantage of the low prices and interest rates. “The second home market will pick up substantially by 2010, partially because of demographics, baby comers are aging and as people turn 50 many are at their peak income and on a fast track to affording this luxury. Foreign investors are still attracted to waterfront property near international airports and recreation services. Miami, Palm Beach, Fort Myers and Naples will be strong”.
Notably, single family homes are becoming a popular choice for international buyers because they’re available and affordable compared to a few years ago, most foreign buyers are purchasing for a vacation home first but also as an investment. European buyers generally vacation during the summer while many retirees from the US choose to vacation in Florida during the winter months, making it the perfect investment for an international buyer.
“I’m seeing people buying because of low prices, than renting them out,” adds Gary. However, he cautions: “now is not the time to buy a property and flip it. It’s a time to hold on to properties, use them for vacation and put them in the rental pool. Real estate is a long-term investment and prices for Florida properties will eventually rise again.”
Photo:
http://www.prlog.org/
