Real Estate Investing Changing Dramamtically

By
Real Estate Broker/Owner with Real Estate Services of SWFL, LLC

Recently, I had the honor of speaking at the Real Estate Club sponsored by AdvantaIRA, a company specializing in 1031 exchanges and self-directed IRA's for real estate investment.  The points I will be making are based on research in the SW Florida area, specifically Fort Myers and Cape Coral.  Some of the points will affect investing in any area, others are region specific.  The following are bullet points of my opinions of the changes affecting Real Estate Investing:

* Fannie Mae / Freddie Mac

  • Releasing properties in small numbers to stabilize prices
  • Distributing properties to local agents rather than National Asset Managers
  • Using Market pricing

*  Lee County, Florida lis pendens filings dropped from 2000+ per month to an average 375 per month

*  Inventory dropped from a 17 month supply to a 1.5 month supply

*  In past 15 months, Lee County residential prices have increased 18 to 38%

*  Investors switching to a "buy and hold" strategy because sold prices are an average of 97% of list price

*  Population growth (Florida)

  • in 2012, Florida grew by 235,000 people
  • Since 2006, over 6000 people have moved to SW Florida
  • 2013 predictions as high as 360,000 new people

*  Unstable economies in Europe bringing more foreign investors

* Insurance companies are purchasing large Single Family Residential packages from the banks

* New home construction by large and small builders is escalating

Again, many of these points are specific to Florida making it a great time to be investing in properties, both Residential and Commercial.  Many savvy investors are buying and renting the properties to migrating families and retirees since the supply of existing homes available for purchase has dwindled.  many investors are also making the transition to investing in Commercial properties also. 

              

Posted by

Mike Cathell, Broker / Owner

Real Estate Services of SWFL, LLC

Serving all of Lee County - Ft. Myers, Cape Coral, Estero, Lehigh Acres & Ft. Myers Beach, Florida

Cell: (239)  770-6250    

Email: Mailto:InvestSWFL@gmail.com

 

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Also blog at http://FloridaCoastrealtor.wordpress.com

 

 

Comments (5)

Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Mike,  Yes things are changing very fast hopefully for the better!!   keep up the good work and good luck with your business,  E

Mar 26, 2013 11:01 PM
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

Mike, it sounds like a lots of different factors are combining to make SW Florida a great place to be investing in lately.

Mar 26, 2013 11:37 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

This are good figures to know.  Seems like a lot of shadow inventory is still just sitting there as banks take their sweet time.

One trend I have seen here in Orlando is all these hedge funds buying up house after house at the foreclosure auction and out of the MLS.  Paying full retail too. 

Mar 31, 2013 01:53 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Florida flag  Featured Article - Florida Real Estate Investors group

Mar 31, 2013 01:54 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Hi Mike, it sounds like a very positive time to own property in Florida, one item on your list did concern me in that this could just be a temporary way to remove some inventory from the market and eventually it will need to be sold.

" Insurance companies are purchasing large Single Family Residential packages from the banks"

Apr 03, 2013 02:46 PM