Florida Real Estate Companies Making the Right Waves

The State of Florida has always been known for its positive, pro-business climate with an economy expected to grow faster than the U.S. economy, at over 3 percent. Rising population and better income levels fuelled demand for investment, especially in real estate, where the state is widely expected to see some of the largest price rises – by nearly 7% – 8% in places such as Tampa, Orlando, Lakeland, in the central part of the state and Melbourne, long the Atlantic coast.

Last year’s hurricane Irma failed to derail the demand momentum for housing in the Sunshine State. With above average affordability, there seems to have been no dearth of buyers, including first-time homebuyers, moving in here as the affected areas got re-built and/or renovated. In fact, better employment rates coupled with low inventory are expected to drive home prices further north.

So, what is the one thing that real estate companies are doing that continues to drive momentum? “Targeting the right buyer segment for what the locale has on offer’, according to Terry Branch, a real estate agent based in Tampa, Florida. “There are baby-boomers looking for relaxed lifestyles, with a sense of cultural community, like-minded people and beach activities who continue to prefer this belt. Also, as the job market is becoming better, many of the Gen-Xers are also looking to buy single-family homes and townhouse-condos in the region.”

Florida-based financial and real estate management company, 17A Enterprises, also mentions the benefits that reasonable median home prices and tax benefits which the state of Florida offers to these buyers as key factors driving demand. In the summer of 2015, 17A purchased 1.7 undeveloped acres on North Longboat Key, for $1.54MM. This was developed into 3 separate home sites. The mean sale price for each home was a robust $2.7MM!

“We try to utilize every benefit that a property spot has to offer to the maximum. The Longboat Key properties not only provided beautiful bay front views, these homes are equipped with the latest solar panel technology and other eco-friendly features which makes them more attractive to today’s conscious buyers”, says Mr. Adams, President of 17A Enterprises.

Going forward, for 2018, from a sector point of view, Florida’s economic benefits from rising population, fast growing employment and increased visitor activity seems set to drive growth in its real estate market. One factor that needs to be kept in mind, is the prospect of rising interest and mortgage rates, which could serve to dampen sentiments – the impact of this, however, still remains to be seen.

tagged in Tanner Adams