While South Florida may have been among the hardest hit by the foreclosure crisis it is also boasting some of the best figures at the forefront of the rebound. So is it a smart choice for real estate investing now or is it too late?
Recent statistics show a 6.4% increase in South Florida homes values since last year, putting the region only in second place to Phoenix, AZ in rising home prices. Experts predict another 6-7% rise in home values over the next though some real estate investing pros are reporting currently flipping houses for 30% more than they purchased them for last year.
There is no question that demand for Florida real estate is incredibly high and there is heated competition over the few REOs which do come on the market.
It is clear that the bottom of the market has well been passed but there are still plenty of opportunities to pick up distressed properties at good prices. South Florida real estate will always be hot and continues to be one of the most sought after destinations on the planet which makes it a little different to other markets around the U.S. It is also important to point out that while some have criticized the region for lack of infrastructure and talent to keep growth sustainable its reputation and sunshine are a great substitute. Plus, over 65% of all recent real estate transactions have been cash purchases meaning the area is not as reliant on the availability of mortgages as much of the rest of the country.
Continued foreclosures and rapidly rising home prices definitely make conditions in South Florida ripe for flipping houses with significant real estate investing profits to be made.
However real estate investors should watch out for several things when investing in the Sunshine State’s hottest region. Investors should be wary of a second bubble if prices rise too fast too quickly, need to be aware of the disparity in trends in different neighborhoods with Miami Beach, east Fort Lauderdale, Coral Gables and Boca Raton remaining some of the best, while being cautious about widespread fraud which has given South Florida a notorious reputation over the years.