Housing Boom Resurgent: Florida Highlights


If anything what we learn from markets is that everything is not stagnant and history has a habit of repeating itself but you never know when the reset button will happen. When you look at the market one thing is true when you look at trends over the long term, housing provides some of the best returns when looked at as an asset. The big issue when we highlight some of the market implosion and growth it usually surrounds around jobs/housing therefore the notion that a house shouldn’t be asset is good in theory but in application it is used to calculate networth and can be used to borrow against to purchase more assets. Let’s take a look at the housing math, what is meant to show that even though the ups and downs have major impact over the long term if you hold it long enough (that maybe after your death) a house is a good investment.




Thanks to J. Parsons.net 

So do we have a strong baseline to support the housing growth that is needed to continue to spur economic growth within our country. The data tells us even if the growth is at a Tepid Pace there is still growth. The Job Numbers which tell us what portion of the market can begin to apply for loans and get approved to purchase the nation’s most stable growth assets is starting to turn in the right direction.




We start to see some quantitative data to back up to the data though not at a rapid pace we have more folks coming back in the job market who in two years time or less will have sufficient amount of work history to apply and be approved for a loan. This statistic is magnified due to the potential of non-buyers paying higher rent as you saw in the previous chart it’s a sword with two poisonous tips. You will be either forced to buy new property or you will continue to pay high rent. Now lets look at the huge elephant in the room the recent swing in housing prices if we estimate that the recovery began to gain footing in 2013 we can say that the most discredited buyers who were hurt in the recession are slowly coming back to the market causing a supply/demand issue in some areas which drives prices higher. Let’s take a look at the last couple years of housing sales in the U.S. market, be advised that the current growth is localized not every area will reap the benefits of these high yearly returns.



Once again we see the upward trend




As you can see the effect is magnified by the low supply

Again all indication are showing a success in homeownership sales but we still haven’t returned to the home values found by the inflated bubble of unstrict lending standards. See that mark up was much to fast this change in the market is much slower but if regulation is untightened this could lead to a new bubble but that appears to be not the case as this market has more of a fundamental basis (but watch the numbers)to stand on.

As we look at the national dataset I want to focus on the Southeast market of Florida, a landscape that appears to be one of the catalyst for the economic growth. There a few markets that stand out from the rest due to their high job creation and localized investment. If we take a look at the charting we can see the huge migration of the population down to the South.



First let’s key in on one of the top players with heavy growth in the medical and aerospace industries on the westside of Florida with some good affordability:


Tampa-St. Pete:Great beaches, job growth in aerospace, medical, and service industries tampa is also home to many prominent universities and healthy downtown/nightlife that extends from Tampa to St. Pete. With the greatest job growth its no wonder why Tampa is a top player.



  

Orlando: Boasting new growth to the downtown area including new sports teams and transportation. Orlando is becoming a banking and technology hub that is attracting many young professionals







Miami/Dade: This area has always and will always be the top of the market climate. It boasts a premium nightlight great diversity, sports teams, and some of the most acclaimed beaches in the world. It’s on third but we know about Miami Beach :-)







Jacksonville: A stateside area reminiscent of southern atlanta more than a florida town, it boasts great growth in the medical healthcare industry. It’s all home to a few sports teams and a downtown that is starting to fill up its vacant sports






Melbourne/Palm Bay: One of the key players in the Aerospace industry with the recent return of Nasa and the influx of highly skilled jobs for aircraft manufacturers the space coast as its called is boasting one of the highest growths in the nation for return on investment. With a quaint downtown and easy access to beaches (you can park any where and walk to the beach). Melbourne is growing and has the potential to surpass or at least match its central and west coast brethren.






Now with the analysis complete, take a look at listings for these properties on this website, if there are any questions and advise in buying homes in Florida from an out of state or international perspective feel free to reach out to realestate@macheene.com