Florida Property Boom At Levels Unseen Since 2005

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Statistics highlighted by Colordarcy show that interest from foreign investors has helped push property price growth in Florida to levels not seen since 2005. The value of single family homes in the state have now risen for 16 months in a row (Source: Propertywire, 7 May 2013).

Florida Tenanted Apartments
It is not surprising that property prices in Florida continue to rise. It is now eight years since the peak of the last boom and it will take time for property prices to rise to the kind of levels they were at back in 2005, allowing for inflation.

Colordarcy analysts say that this latest research by the Miami Association of Realtors and other prominent real estate portals in Florida shows that Miami and Orlando are now back in a sustained cycle of growth which makes both particularly appealing to foreign investors.

Investors from Canada to Asia are beating a path to invest in Miami property due in part to the weakness of the dollar against their home currencies and the obvious appeal of owning a home in Florida.

This interest from foreign investors in the obvious attractions of the Sunshine State has helped to drive up prices to levels unseen since the peak of the last property boom in 2005.

In March this year prices went up 16% on February, which was the highest percentage increase in the median sales price of single family homes since the height of the previous real estate boom.

Commenting on this latest news, Loxley McKenzie, Managing Director of Colordarcy said, “It is not surprising that property prices in Florida continue to rise. It is now eight years since the peak of the last boom and it will take time for property prices to rise to the kind of levels they were at back in 2005 allowing for inflation.

Colordarcy analysts claim that even if investors were to take out further double digit increases in the price of property, Miami tenanted investments now generate yields of up to 9% in some areas.

Florida property prices dropped so low, they slipped below the threshold of what they were actually worth. This was good news for cash investors and bad news for those who took mortgages out in 2006 only to find that prices were moving catastrophically in the wrong direction.

This explains why even with the double-digit growth seen in the past twelve months in cities like Miami, many of those who currently own property are waiting for values to rise further before selling.

They still owe more on their homes than the price they can sell them for, which stifles supply and increases competition for available properties.

In Florida and particularly the best areas of Miami, they just can’t build new homes fast enough.

Notes to the editor:

Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.

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Brett Tudor
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Tel: +44 (0) 207 100 2393
Email: press(at)colordarcy(dot)com
Web: http://www.colordarcy.com/

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