With the increase in the Parkland and South Florida real estate market, more and more investment companies are purchasing homes. Recently, dozens of companies have scooped up more than 5,200 Florida homes. Even with the foreclosure market settling, Florida still remains one of the top states in the country for distressed real estate.
Many of these investment companies are purchasing homes that are priced in between the $100,000 to $400,000 range with plans to renovate them and then rent the properties out for the long term due to the increase in the rental income. Many of these investment firms are also purchasing distressed properties (bank foreclosures and short sales) in bulk before these homes are even listed to the public. As a result, the distressed real estate listings will come off the market quickly helping the overall South Florida real estate market rebound.
But, with cash investors purchasing these homes for investments, some individual buyers are being cut out of the equation. I was quoted in a recent Sun-Sentinel article, Florida foreclosures big business for investment firms, as saying, South Florida real estate agent Michael Citron said a few of his clients have run up against these investment firms. But Citron downplayed the impact of companies rehabbing and renting foreclosed homes in bulk. It’s definitely happening, but they’re not taking over the market,” he said. I think it’s a fad.
As the demand of buyers, both end users and investors, increases, and the overall available property inventory decreases, we will keep seeing the real estate market rebound this year. All of this is exciting news for Parkland and South Florida homeowners that are finally seeing values increase in our marketplace. Hopefully, interest rates will stay low this year, and many distressed sales will be sold quickly keeping the real estate momentum going into 2014.
There is no better time right now to sell your Parkland or South Florida home and then purchase your next home. You will be getting top market dollar for your current property and then be able to take advantage of record low mortgage interest rates. Your home could be worth more than you think! If you are thinking about selling your home, please give me a call directly at: 954-609-0591, so I can provide you with a customized market analysis of your home.
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