South Florida Second Homes: MARKET STINKS?!? BAH!! - The Case for the STRENGTH of the 2nd Home Market in South Florida

For those of you that don't know me... sometimes before I go to bed, I will take my trusty HP iPaq hx4705 to bed with me and read the local news.  I have several sections I read so that I stay up on my local goings-on.  I read both the Sun-Sentinel and the Palm Beach Post.

The Sentinel is a better all around paper but the Post covers news in the county where I live city by city which has its pluses...

The articles that I tend to be drawn to are great fodder for blogging - REAL ESTATE CONDITIONS.

Last night I came across 4 - count 'em - 4 articles about Florida as the choice for Snowbirds and Baby Boomers to move to in the next few years.... All of them in the Sentinel this time.

Home builders survive in tough market by catering to 55+ with new communities

In this article, GL Homes, Toll Bros, Traditions of America, The Palace Group, & Minto Communities are all profiled as developers that are doing well in South Florida thanks to the Baby Boomers' tastes and preferences.  The South Florida market is catering to the baby boomers desire for newer homes, high ceilings, high end finishes, and conceirge type services and great activities at the clubhouses in the 55+ communities. 

GL homes' communities in Boynton, Lake Worth and Delray are some that I have visited and are great places.  They cater to the upscale needs... while still creating the room for visiting family... one interviewee said that she felt it was like "summer camp for 55+"... and part of this is the amenities but part of it is the deed restrictions that prohibit long term residence by anyone under 55.  This means that these communities really do become a getaway for the residents.

The real gist of the story is that despite bad market news... these developers are still succeeding and profiting in this niche market!

One in four snowbirds find a roost in Florida

In 2005, Florida led the country with 818,000 snowbirds followed by Texas and Arizona.  Economic indicators say that Snowbirds and Seasonal Tourists add roughly $1.6Billion to the Palm Beach County economy and $800 Million to Broward County (that only falls behind because of a smaller population and a lack of buildable land.  As Broward grows, older communities will be replaced and this number will change.)

"While taxes may be going up, snowbirds from places like Boston and New York say Florida is still a bargain, researchers say."

This is promising news considering all the bad press about our property taxes being "out of hand" and our insurance issues. Despite this, the tropical weather and the beauty of being near the ocean seals the deal for most retirees.

Condo projects bring unique selling points to Boca market

This article details two niche condo developments that are selling well despite the market turmoil because they appeal to the market that understands and embraces the allure of Boca Raton.

One Thousand Ocean is a 52 unit ultra luxury development by LXR Luxury Resorts.  I just drove by it yesterday!

"Prices at One Thousand Ocean range from $2.7 million to more than $10 million for units ranging from 2,900 square feet to more than 10,000 square feet. The project has a distinctive location -- on a private peninsula at the edge of the Boca Resort and Club and surrounded on three sides by the Atlantic Ocean."

In competition to this project is Luxuria - starting at $4Million!

The newest niche project in Boca is The Modern - Boca Raton's first Loft development.  This development will be more an urban setting near "Downtown Boca Raton" surrounded by restaurants, night spots and shopping.  These 84 units will range from $400-900K.

All of these units - including One Thousand Ocean - are aimed at the Boca Lovers... but will appeal to the younger and hipper snowbirds as well as the ones who want to have a superb location - none of the projects are more than 5 minutes from the water!

Palm Beach County country clubs add amenities to woo Baby Boomers

Existing Communities want in on the action as well.  This article speaks of the existing community of Boca West and its multi-million dollar makeover of the clubhouse facility to include state of the art fitness equipment and luxury spa services.  Many of the communities in Boca Raton have such facilities either recently completed (I've used the facilities at St. Andrews CC myself) or in the works.  These communities are also on the higher end of the price spectrum but cater towards the snowbirds who will eventually want to make the country club life of Boca their permanent residences.  While club memberships are not inexpensive and cannot be financed with the property, the exclusivity and convenience of having upscale dining, great golf, tennis and swimming as well as fitness and spa activities in the gated neighborhoods lets snowbirds come and roost in comfort!

What does this mean??  Again the Silver Lining is King! 

Sure, the market for affordable housing and middle class is stressed... but the snowbirds still want in and with the market being down, now is a great time to get a great deal.

Sure - we ALL complain when the Snowbirds come down and we can't get a table at a restaurant and the number of fender benders goes up... but they are a big part of our economy!   As real estate professionals they should also be a big part of our practices.

The 2nd Home market should be fairly easy to crack.  From a mortgage perspective, the parameters for most people means that financing a second home has similar rates to primary purchases! From a real estate perspective, this could be a group that transitions into multiple properties - first renting for a few months, then buying something small in an area to test out... then buying a property to stay in!  We should be looking to help these buyers with service just like they are looking for in their homes - Red Carpet!