Because of their constant sun, white-sand beaches and world-renowned food, Miami and South Florida are well-known as popular vacation destinations.
However, many people don’t realize that South Florida’s popularity extends to the real estate market as well.
South Florida properties sell more quickly than any other area and at higher per-square foot prices.
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However, if you’re thinking about buying or selling property in South Florida, here are some factors that could be driving the region’s hot housing market.
1. Get low-interest rates
The interest rate is one of several macroeconomic factors which directly affect home prices. It determines how much money home buyers can borrow and how much they are able to spend every month.
You might be able to see that low interest rates are a great way for potential homeowners to borrow and allow them more flexibility in the event of a drop in their income.
Fannie Mae notes that every percentage point drop in mortgage rates translates into borrowers’ additional $2,000 purchasing power.
This explains why most economists agree that lower interest rates increase demand for homes – but also why it can take some time before home prices respond accordingly.
2. Increased Employment
How many jobs are created in a particular region tells us much about that area’s economy. You might be able to guess that more jobs means higher salaries for the locals.
South Florida has experienced some of the greatest job growth over recent years. Through 2021, the growth rate is expected to increase by more than 100,000 jobs annually.
This not only bodes well for residents but also means that new employees are raising demand for homes in South Florida’s flourishing real estate industry.
3. Population growth
In previous recessions, Miami’s housing market was one of few bright spots. In part, that’s because international buyers tend to own more than 50% of all homes in some South Florida zip codes.
As money flows out of China and other emerging countries, the demand for US real property has helped to drive up prices even though America’s economy seems to slow down.
If you are looking to profit from this trend, residential real estate investment can be an excellent option.
The trick is finding a niche market where locals aren’t oversupplied with properties and can make wise investments without getting too nervous about local trends or economic news from overseas.
Sunshine State is a state that has everything. The Sunshine State offers more than just beautiful weather and a variety of outdoor activities.
There are many ways to spend time: You could go on a beach, fish or boat; you can play a variety of water sports. Or practice your skills by playing golf at over 300 courses throughout the state.
With all that going for it plus no state income tax and affordable housing—it’s no wonder so many people call South Florida home!
The post Why South Florida’s Housing Market is Always Hot? Entrepreneurship Life first published this post.