FLORIDA MARKET UPDATE
It is now just over 2 years ago since prices reached their low point in Florida. In fact from August 2010 to March 2012, prices were fairly static, however since then, prices in some markets have grown by around 20%.
This has been driven by investors keen to capitalise on the low price points and generous annual returns. So much so that available inventory has dropped by 60% in this period of time.
It is fair to say that from 2007 – 2010 there was a significant oversupply of residential real estate, in some cases as much as a 30 month supply. However, with supply now below 3 months for the first time since 2005, there is now almost too little.
Having participated in the acquisition of residential real estate ourselves during 2011 and early 2012, we have seen first hand the large investor groups (Blackstone and other hedge funds) aggressively purchasing, and paying a premium, for almost all available inventory in certain neighbourhoods.
This bodes well for clients who purchased in the recent past, as prices have stabilised, are staring to increase and rents are now rising.
However, for clients now looking to enter the market, or existing owners looking to purchase again, what are the best new opportunities?
We believe that select new construction opportunities offer an attractive proposition. This is because developers were able to acquire land at exceptionally low prices over the last couple of years and they have also been able to negotiate low prices on construction costs, as suppliers have seen precious little new development and are prepared to offer excellent terms.
As a result, with construction now evident across multiple sectors in Florida, there are some very good buying opportunities and ones that offer short as well as long term rental opportunity. Finally, financing is becoming more readily available, making funding a brand new property particularly attractive.
FANTASTIC OPPORTUNITY IN POMPANO BEACH
Santa Barbara Villas, Pompano Beach, Florida
The final 4 town homes at Santa Barbara have just been released, in this brand new development of 10 properties, located in the heart of beautiful Pompano Beach. Being part of the Miami metropolitan area and a popular vacation hot spot, this part of Florida has, and continues to attract well-heeled vacationers who pay a premium to stay in good quality accommodation.
Located less than a mile from the beach and even closer to the intracostal waterway, main dining and shopping centre. Santa Barbara is the only new development opportunity in Pompano Beach.
Each home has 3 bedrooms, 2.5 bathrooms, a private garden plus garage parking. There will also be a common resort style swimming pool plus whirlpool and cabana.
Pompano Beach has benefited from a multi-million dollar program of regeneration, which is now almost complete. Pricing is still considerably lower than Ft. Lauderdale, its immediate neighbour to the south, and the potential for price appreciation, while still benefiting from excellent annual returns, makes Santa Barbara particularly attractive.
A deposit of 25%, the balance on completion in early 2014, financing available and pricing from $309k.
For more details on market news or new opportunities please contact Alistair Auty, email@example.com.