At the moment, the American market has the best conditions for purchasing real estate. This trend is particularly prominent in competitive, high-demand locations, such as South Florida. After the government curbed the spread of COVID-19, prices began growing rapidly in this state, affecting the mortgages and the average rent.
After the economic downturn of 2008, many experts doubted that the value of local real estate would ever be able to climb back. Some are even wondering whether we see a similar economic bubble now.
However, the value of residential properties in Florida is gradually beginning to decrease, which is a good sign for buyers. Higher interest rates usually cause a reduction of real estate prices, which helps balance out the mortgage costs.
So the current market cooling is actually a good sign of striking a balance. This can be bad news for sellers who will not be able to charge as high prices for their property as they did a few months ago. But for buyers, this trend signals that it’s time to invest.
Here are the key reasons why 2022 is the best year to purchase real estate in South Florida:
- The cooling of prices is a good investment opportunity. Lower prices of South Florida real estate give investors who were waiting for the best moment a chance to maximize their returns.
- Interest rates are still relatively low. One of the greatest advantages for buyers of local real estate today is the fact that interest rates are still below the pre-pandemic level. As of July 26, 2022, the current rates in Florida were 5.66% for a 30-year fixed-rate mortgage, 4.88% for a 15-year fixed-rate mortgage, and 4.38% for a floating-rate mortgage.
- The South Florida real estate market remains stable despite external factors. One of the greatest advantages of purchasing a house or an apartment in this region right now is the fact that many events occurring on the global political and economical stage have minimum impact on the local real estate market. The Sunshine State still attracts buyers with its nice climate, beaches, and a wide range of amenities.
Many experts specializing in the American market concur that purchasing real estate in South Florida is currently one of the best investments available. Lower prices of residential properties mean that investors can get a return sooner, as the demand from tenants and buyers remains stable.