2020 has been an unprecedented year full of ups and downs, especially when it comes to the real estate market. Just a few months ago, investors, sellers, and buyers were all unsure what this pandemic would do to the real estate market, with many people nervous about an inevitable crash.
However, just the opposite has happened. As the world has been in quarantine, people are placing more value on where they live than ever before which has led to a boom in the real estate market. Demand is higher than ever and prices continue to rise as the year comes to an end.
But what can we expect for 2021? Will prices continue to rise, or will they even out? Keep reading for our Florida forecast and predictions for real estate in 2021.
The Population Will Grow
The population in Florida grows, on average, 1.6 percent per year and that growth is expected to continue. Florida is one of the most popular destinations for people immigrating from around the world, as well as for U.S. citizens searching for warmer weather from up north. Pair that with more millennials wanting to live in the major Florida cities like Tampa and Miami, we can expect the population to at least reach average growth levels, if not exceed them in 2021.
What does that mean for real estate? Well, it means more demand for buying properties, but also more demand for renting properties. A lot of people moving here from out of the state or out of the country are looking to rent before settling down and buying a property. This is great news for investors; there should be no shortage of renters for your investment properties come 2021.
Prices Will Continue to Rise
After a short dip early in the pandemic, real estate prices have surged well above what they were prior to the start of the pandemic. But can prices continue to increase in 2021? The answer is yes, and they are expected to.
Demand for real estate is sky-high and supply is nowhere close to catching up, which means prices will continue to rise into the new year. Regardless of the pandemic, we are certainly in a seller’s market and it’s not expected to shift from that next year. So for potential investors waiting for a real estate crash, don’t hold your breath. The time to invest is always right now!
Higher Demand for Short-Term Rental Properties
With a vaccine on the horizon, traveling will begin to ramp up again in 2021. People will be jumping at the opportunity to travel to the best beach spots in Florida for a paradise getaway, and that means demand for short-term rentals and AirBnBs will skyrocket.
For investors who prefer renting out to vacationers, 2020 may have been a bit of a struggle. But don’t worry; brighter days are ahead in 2021.
There Will Be Great Opportunities for Investors
While prices are increasing and investors may feel hesitant about jumping into a seller’s market, there are still plenty of opportunities for a great deal. Investors who are willing to put in some sweat equity can capitalize on the foreclosures around the state. With prices skyrocketing for turn-key homes, the opportunity is there for investors to buy a cheap, run-down property and renovate to make a huge profit.
Investors with cash-on-hand should look to auctions and bank-owned homes to find some great deals. Additionally, you can work with an investment company that has exclusive connections to the best deals in town. Even in a seller’s market, there are always fantastic deals out there to take advantage of.
The Time to Invest Is Now
If you’re on the fence about investing in real estate, our 2021 forecast clearly shows that the time to invest is now. With higher prices and more demand on the horizon, waiting around to invest will only cost you in the end. Get started on your real estate investment journey today with Premis Realty. Contact us today to learn more about our investment and property management services.