US housing market surges back to life with Florida stepping forward as latest investment hotspot
- US house prices rise by 11.5% in a year (National Association of Realtors)
- High end property sales in Florida increase 24% in 2013 (Florida Realtors)
- US dollar exchange rates best they have been for British buyers since 2009 (Brookes & Co)
The outlook is bright for the US housing market, according to the latest figures. The median sales price for homes across the nation increased 11.5% in 2013 compared with the previous year, to $197,100 according to the National Association of Realtors.
The luxury end of the market has recovered particularly well. In fact, the Demand Institute’s ‘A Tale of 2000 Cities’ report has revealed that the value of stock at the top end of the market has risen by an impressive 73% since 2000. The report belies the belief that snapping up bargains at the bottom end of the market is the best way to profit from real estate: over the same period, the stock at the lower end of the market rose by a comparatively low 59%.
The favourable exchange rate at the moment is making the US property market particularly attractive to British buyers, who effectively have an additional £6,500 per £100,000, compared to February 2013, thanks to the strength of the pound against the dollar.
Regarding the US’s recovering economy, Jeff Korzenik, chief investment strategist for Fifth Third Bank in Chicago, states,
“We believe the U.S. is going to see accelerated growth in this year, the best growth since 2005.”
Korzenik’s analysis includes confidence in the US’s resurgent housing market and, as ever with an improving market, certain areas of the country are emerging as investment hotspots, attracting investors from around the globe due to their potential for high returns. He observes,
“The way Florida has worked historically is if the U.S. is doing well, Florida tends to do very well. It’s widely perceived as a business-friendly state. Because Florida has run its fiscal affairs very prudently, Florida should be able to increase its investments better than many other states, and we think that’s a competitive advantage for Florida.”
The figures certainly seem to back up the investment expert’s predictions. At the start of 2014, Florida’s housing market marked the 26thconsecutive month of year-on-year increases in median property sale prices. The number of single-family home sale closures in 2013 was up 11.8% compared with the previous year according to Florida Realtors and the median sale price reached $168,000 – an increase of nearly 16% on 2012. Sherri Meadows, the company’s president, comments,
“The positive fundamentals of Florida´s housing sector continue into 2014.”
Philip Button, Managing Director of Florida property investment specialists Brookes & Co, agrees. He has seen interest in leading development The Fountains at ChampionsGate – which Brookes & Co is presenting to the UK market in partnership with established developer Feltrim – increase massively so far in 2014. Only 12 of the original 50 units at the stunning resort remain available for investment. Button explains,
“The market has been so buoyant in Florida recently that UK buyers are eager to invest in the Sunshine State. The strength of the pound against the dollar at the moment means that they get more for their money than they would have done a few years ago, while the resurgence of the US housing market creates scope for huge NET annual returns on cash invested – such as 14.61% at The Fountains. In fact, US dollar exchange rates are currently the best they have been since 2009 for British buyers.”
Of course the improving market means that prices of investment properties are increasing and The Fountains is no exception. Investment in the luxurious three and four bedroom villas now begins at £53,128 deposit, with full villas available from £212,512 and US mortgages available. Located in a secluded development scattered with oak and pine trees, along with a state of the art clubhouse and fitness centre, plus a resort-style pool, The Fountains offers peace and tranquillity at the same time as being just minutes from the buzzing attractions of Walt Disney World Resort and Orlando’s numerous other attractions.
As has proven the case nationally, upscale properties such as these are showing strong returns in Florida, with Florida Realtors reporting a year-on-year jump of 24% in 2013 on the number of sales of properties at the top end of the market.
With prices set to increase further over the course of 2014 and beyond, those keen to benefit from Florida’s real estate investment hotspot status will need to move fast. Thankfully, Brookes & Co organise regular inspection trips to the Sunshine State, so no potential investor need miss out on the fantastic opportunity that Florida currently affords.
For more information, contact Brookes & Co on 01621 875 925 or info@brookesandco.co.uk, visitwww.brookesandco.co.uk or meet the team online.