Is the Florida housing problem almost over? Yes and no. It depends upon area, demographics, age of properties, levels of tourism, commerce and industry, as well as dozens of other issues that most buyer-owners and investors never bother to consider.
Developers are talking of another wave of condo development. Beware developers' hype, a veteran real-estate broker warns, especially in over-condoed areas like Miami.
The average person interested in purchasing single units, to either occupy or rent out, there finally is a new—and positive—reality. Prices have fallen enough so that I can finally tell clients to buy…carefully. It is still not advisable to go out and buy the junk condos being peddled in Miami or one of the hundreds of single-family homes sitting empty in areas like Port St. Lucie and Cape Coral. Real-estate shoppers must do their homework, and not rely on an agent who works solely on commission. Take away the incentive to make a sale at all costs, and you start getting real numbers, real inspections and agents who will tell you when a property isn't right for you.
At the moment, Florida offers an unusual window of opportunity for individual buyers and investors. Interest rates are low, prices are down by 50% or more, and sellers are anxious. The picture is a bit clouded by the South Americans and Europeans, who fear currency collapses in their homelands and are buying without regard for quality, maintenance costs or resale value. Russians flush with cash are purchasing indiscriminately in South Florida. Many are buying condos in overbuilt markets that didn't plan for explosive growth. Traffic, crime, health care and education are all taking a turn for the worse in these places.
Canadians, flush with the very strong Canadian dollar, are also buying, but they are far more discerning. For the most part, they are avoiding South Florida and looking for better value, more amenities and future appreciation north of there. U.S. baby boomers on the edge of retirement and looking for serenity—not the hustle of Miami, Naples, Tampa and other overbuilt markets—also are buying.
Also in the market are South Floridians moving north for better schools, less crime and a better quality of life. For the first time in years, they are buying oceanfront homes and condos along the Treasure Coast, which stretches along the Atlantic, from Jupiter and Hobe Sound up to Sebastian and the Space Coast (just above it). The key is finding locales that didn't participate in the 2003-2007 housing bubble, because they were either established or low-growth areas. Stay on the coasts and away from the interior's glut of single-family homes and gated communities.
Look at the barrier islands north of Palm Beach County, such as Hutchinson Island, which has everything from one-bedroom oceanfront condos to 20,000-square-foot mansions. Don't buy the story that Miami's popularity will jump because the area is getting casinos. Biotechnology is actually Florida's brightest star, getting brighter by the nanosecond. There are three main centers: northern Palm Beach County, St. Lucie County and the Orlando area. If you want the best of all worlds, look at the area between northern Palm Beach County and St. Lucie County. In the middle sits Martin County, with good schools, a relatively low-growth market, a no-high-rise policy and magnificent choices for owners and investors.
Buyers, do your homework, and call one of the many real estate professionals at Bristol Properties International. With offices on in Southeast Florida, call 561-347-1303 or Southwest Florida at 239-352-6400, the sales team is trained to properly identify value in today's housing market and aggressively prusue the perceived deals. For more information email info@bristolre.com.
