Lifestyle

Tag: florida real estate market

  • History Of Coconut Creek, Florida

    History Of Coconut Creek, Florida

    The butterfly capital of the world is very important for a lot of different reasons, but for a lot of people they do not realize that it is located in Coconut Creek, Florida. What else is interesting is how many people overlook the history of this town and how it makes a difference in how the town is viewed. Since that is the case, people may want to learn the history of Coconut Creek to guarantee they know how this region took off and had continued to grow in beauty each year.

    The history of this location is fairly recent. The reason for this is up until the 1960s Coconut Creek was part of Pompano Beach. So this is still a fairly new town about some of the other areas that people have studied in the past. However, this does not mean the location has not started to have some growth as it has managed to continue to grow in both population, business, and attractions. So from small beginnings, the town has started to take off and gain quite a bit of popularity.

    How Coconut Creek got its name is very original, but it is mainly from the coconut trees that developers who came to the area real early planted. However, the creek part of the name of Coconut Creek comes from the combination of a couple of names, like Indian Creek, which has a creek in the name and Coconut Grove. So taking these two names and splitting them apart, allowed the people to come up with the name of Coconut Creek.

    A key thing that people are going to like about the community is how the people who were working on the early region planned it out. While it may not seem like it is well laid out, once people start to get to know the area they will see the foundation for the location was thought through very early on, and this has made it quite a bit easier for people to get the trip they want to have, but also have an easy flow to the city.

    The city did have a bad reputation for a while as they are located right next to a location that is kindly termed Mount Trashmore. This is a location that is nothing more than a landfill, but it used to emit some extremely foul smelling odors directly into the city. However, the city reached an agreement that stated that food and other decaying materials would not be put in the landfill, which dramatically reduced the amount of smells in the air.

    Traveling to a different region people have never been to before can be exciting. However, if people do not know the history of the area, it can be very difficult for them to have a good time because they are constantly trying to figure out why something is so important. By knowing about the history of Coconut Creek, Florida, people can have a great time and know the history of the region.

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  • Should You Invest In South Florida Real Estate?

    Should You Invest In South Florida Real Estate?

    Quick Hits: If you’re planning to buy a home, do it now, because prices are going up for the next few years. Investments in single-family rental properties have good potential in Broward County. Apartment developments have the best potential in Miami-Dade. Mortgages have higher risk even though prices are rising. Best bets for investments in retail or restaurants are in Palm Beach County, which also needs medical office space.

    With a large number of second homes and condos, South Florida is prone to boom and bust cycles that stem more from investment hopes than housing needs. Add an expanding Latino population and waves of baby-boomers – two million retiring every year – and you get both risks and opportunities. Demand for Florida housing is always growing, but is it growing slower or faster than the supply?

    The percentage of second homes increases as you head north from Miami, to 20 percent in Palm Beach County. This large pool of empty properties is the swing vote in home prices. It can swamp supply during a downturn but also represents the desire of future retirees – and South American investors – to buy while they can.

    The economy of Miami itself is diversified – with an important finance sector – but as you go up the coast more jobs are in retail and services. Healthcare is the largest creator of jobs in all three counties, and growing rapidly.

    Home prices were strong in the last three years – up 40 percent – and I expect they’ll keep rising 10 percent a year. But… How much of that 40 percent was from speculation in foreclosed condos? How much from ‘real’ demand? There are strong reasons to believe that from here on we are looking at prices going higher than they ‘should’ – especially in Broward County – in other words a mini-boom that will fizzle after a few years. If you’re looking to buy for the long-term, do it now. If you’re looking for a short-term investment, be very, very careful.

    Because rents held up better than home prices during the recession, buying a property to rent out is an attractive option despite the recent rise in prices, less so in Palm Beach County, more so in Miami-Dade and Broward. Almost half of households in Miami are renters. With most the new healthcare and retail jobs paying low wages, the renting population will increase. In urban areas it makes sense to buy a single-family house and split it into rental units. Apartment buildings are a good option in Miami – at the right price.

    Mortgages are a difficult investment right now. Because home prices will keep rising the next few years, the equity cushion for new mortgages will grow quickly; on the other hand, prices are almost too high in Broward and Miami-Dade already, which means these mortgages will have a rising risk of default. Just because the last bust is over doesn’t mean a new one isn’t around the corner. Lenders should back away from high loan-to-value mortgages during this period. The same is true for construction loans; new projects should be financed in very careful stages.

    Population is growing at an uneven pace, slower in Miami, faster as you move up the coast. Over the next three years I expect a 10 percent increase in housing needs in Palm Beach County – 30,000 owner properties and 23,000 apartments. I expect 25,000 of each in Broward, and in Miami 30,000 houses and 36,000 apartments.

    The climate for investments in retail businesses and restaurants is best in Palm Beach County, where demand has grown quickly the last two years and average income is the highest. All three counties, but especially Palm Beach will need office space for the growing number of healthcare workers.

     

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  • Current State of Miami’s Real Estate Market

    Current State of Miami’s Real Estate Market

    The Florida real estate market is constantly evolving, and it can be difficult for people without a real estate background to keep up with the changes. The past year has shown that the Miami housing market has softened, but real estate professionals in the area are confident that the Miami real estate bubble is not about to pop. Some of the factors affecting the current market include:

    Foreign Buyers and Investors

    Miami is a sophisticated international city, and people from around the world have been flocking to the area to invest in condos and single family homes for the past several years. Foreign buyers were particularly active in the Miami luxury real estate market; in 2015 real estate professionals said that over 50% of luxury buyers were foreign, while in 2016 that figure dropped to 33%.

    This drop in foreign buyers can be explained by economics and the foreign exchange rate. Latin American investors played a big role in driving the Miami real estate market, especially luxury properties, but major countries such as Brazil, Argentina, Columbia, and Venezuela are currently in a recession and the exchange rate in those countries has decreased by 25-40% compared to the U.S. dollar.

    Foreign buyers have not disappeared from the Miami real estate market, but their numbers are expected to be lower than normal until economic conditions improve in other countries. This has created new opportunities for local buyers and domestic out-of-town buyers.

    Domestic Buyers

    While the number of foreign buyers in the Miami area has declined this year due to economic conditions, there has been an uptick in the number of domestic buyers investing in Miami real estate. A Miami real estate market analysis shows that the number of local buyers has increased from 11% of total buyers in 2015 to 23% in 2016. American out-of-town buyers, particularly New Yorkers, have also risen in Miami from 16% in 2015 to 20% in 2016.

    The shift in buyer demographics has slightly altered the real estate environment in Miami. When foreign buyers were dominating the market, many real estate transactions were cash deals as international investors purchased luxury condos as an investment or a vacation home. Foreign buyers focused more on building amenities, nightlife, dining and shopping when choosing where to buy.

    As more local buyers are emerging in the Miami market, buyer interests are changing. Buyers are focused more on qualities such as quality school districts, commutes, and access to retail stores and activities since most local buyers plan to live in their new home year round.

    Luxury properties, particularly condos, are still in demand with out-of-town domestic buyers. Miami’s thriving Financial District, Florida’s favorable tax laws, and the beautiful climate makes Miami a highly desirable place for domestic investors or people wanting to relocate.

    Future Outlook

    The Miami real estate market may have slowed over the past year compared to years past, but it is not expected to remain this way, and prominent Miami real estate professionals do not expect any type of market collapse. In fact, figures show that there could be a sharp upswing in Miami’s real estate market in about 18 months.

    If you are interested in investing in Miami real estate, now is the perfect time to do so. Whether you would like to purchase a condo as an investment or vacation home, or are looking for a single family home, the favorable conditions for buyers are not expected to last long. Take advantage of the current inventory levels, prices, and interest rates now for the best values before the tide shifts back to a seller’s market.