Florida investors and developers can gain insights into how economic booms and busts influence commercial real estate by looking at the energy sector over the last few years. In June 2014, a barrel of oil demanded $107, and employment was high among energy industry workers in oil drilling and processing centers in the United States and Canada. Less than two years later in February 2016, oil had dropped to a 12-year low of $26 per barrel.
Purchasing residential properties can be competitive in Florida, and some buyesr may need to secure funding for a purchase as fast they can. Many real estate investors go to hard money lenders for bridge loans that can be taken out while they are waiting to be approved for loans with more favorable terms.
Florida real estate investors and developers should know that Federal Reserve officials are closely watching the prices of high-rise apartment buildings. Ten years after the housing market collapsed in the United States, this part of the commercial real estate sector has the potential of becoming the next asset-price bubble.
Florida residents who are apprehensive about purchasing a home may be pleased to discover that doing so may be more affordable than they think. This is despite the increases in mortgage interest rates and home prices and the stiff competition from other buyers.