A recent study done by Marcus & Millchap, shows that rental prices in Florida may see an increase in the last half of 2012. They cited improving job rates, less apartment inventory, and declining vacancy rates as the main contributing factors to the expected increase in rental costs. Larger cities like Miami, Tampa, and Orlando may feel the increase more so than smaller markets such as Sarasota or Bradenton because the smaller markets usually have somewhat higher vacancy rates. Here in Tampa, Florida, we have seen this trend first hand with our investors and landlords expecting increases in rental rates.
This has proven to be an attractive component for international investors who are constantly looking to Florida, especially Tampa, for investment opportunities. Real Estate management companies can present higher return opportunities to these investors who usually hand the keys over immediately after closing on properties. Condo communities in Tampa such as Courtney Palms, Valhalla, Cordoba Beach Park and many more are seeing these increases already.
Being that these rental prices are already on the path to spike, tenants who have been on the fence about buying, are being encouraged to step up to the plate and make the move into home ownership. With mortgage rates at a record low, 3.75%, more and more people are seriously considering their purchase options. This alone will not fuel a full recovery, but with the help of an improving job market that now boasts an extra 1 million jobs since the beginning of 2012, it will definitely have a larger impact for the rest of the year. The last couple of months have shown increases in real estate sales and new construction homes at the highest level in many years.
We encourage all prospective home buyers, investors, and renters to ask themselves, “Am I ready to purchase a home”? The answer may come easier by having a casual conversation with one of our experienced real estate professionals and getting in front of someone who can actually crunch the numbers before you embrace or simply dismiss the idea.
SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that “SI Real Estate is Global Real Estate in Every Way!”