Florida Real Estate Trends 2010 And Beyond
Real estate markets are inherently volatile, but few were prepared for the volatility of the Florida market from 2000-2009. In the first half of the decade, a virtually unparalleled housing boom fueled the Florida economy and drove real estate prices to record levels. New construction was fast and furious, but was unable to keep up with demand. Then the market crashed, and home prices dropped by 30% or more statewide following several years of declining value.
What will the future hold for Florida real estate? None can tell for sure, but here are some of the trends experts are predicting.
Home Prices Stabilize
The final quarter of 2009 saw a huge surge in many housing markets in Florida. The combination of first-time home buyer credits, indications of economic recovery across the country, and the deeply depressed prices made many people decide that 2009 was the time to take the plunge into home ownership. Although many were deterred by job insecurity, others took advantage of the record low interest rates to get great deals on housing. This led to a stabilization of home prices or even nominally increased prices in some markets. This trend is expected to continue.
Foreclosures Will Continue
The slight recovery notwithstanding, many people who bought their homes at the maximum distension of the real estate bubble are still left with houses they cannot afford and will be forced into foreclosure. Now, though, the real value of these properties is being recognized by investors and others eager to snap up a bargain. Many foreclosed homes (and short sales) experience multiple bids as soon as they hit the market, and unprepared buyers found themselves outbid, especially by investors with huge capital.
Commercial Property Will Continue to Fall
Although residential property markets are stabilizing all across the country, commercial property values are expected to continue plummeting. Consolidations, mergers, and failures as a result of the downturn have created a significant reduction in demand for commercial space. Just how long declines will continue or how low prices will fall is anybody’s guess, but with vacancy rates reaching nearly 20% by the end of 2010, it can’t be good.
Tourism Will Rebound
Even people forced into frugal circumstances by the downturn are tired of living life under siege and are looking to get a break, albeit on the cheap. People will be looking for bargains everywhere, and businesses that can supply those needs will see growth. With more free time and less money, we can expect to see people taking longer, less expensive excursions, including driving vacations instead of flying (as long as gas prices remain relatively low). Roadside businesses and attractions that have long been shrinking may see a surprising bump up this year.
Florida Property Will Retain Its Long-term Value
The central tenet of real estate, “location, location, location,” holds true no matter what the economic conditions, and some locations have significant inherent value. Florida combines some of the best weather in the country with stand-out attractions and unparalleled beaches. Florida had the biggest boom in the country because so many people wanted to come, and though the bust looks bad now, it won’t last forever. Soon Florida property will regain its value and more.
If your property has been depreciated, some government agencies may see this as an opportunity to use eminent domain and acquire the property at bargain prices. Don’t let them erase the future value of your property and don’t accept a sale far below what your property is worth. Contact the Florida Property Rights Law Firm, PA to learn how to protect your property and get top dollar if you are forced to sell.