Real Estate Investors: More Sales and Higher Prices

The National Association of Realtors recently released their 2016 Investment and Vacation Home Buyers Survey. The survey revealed many characteristics of both vacation home purchasers and investors. Two weeks ago, we posted on the vacation home market. Today, we want to concentrate on the investor real estate market.

The survey revealed that investment-home sales in 2015 jumped 7.0 percent to an estimated 1.09 million from 1.02 million in 2014.

Lawrence Yun, NAR’s chief economist discussed the increase in the number of sales:

"Despite a smaller share of distressed properties coming onto the market, investment purchases reversed course in 2015 after declining for four straight years. Steadily increasing home prices and strong rental demand appear to be giving more individual investors assurance that purchasing real estate will diversify their portfolios and generate additional income if they decide to rent out the home."  

Prices Are Also Up

The price paid by investors also increased in 2015 by 15.3%.

If you are thinking of investing this is a good time to start entering the investment market with Strong home prices going up and the huge demand for renters to live somewhere.  2016 may not be the best year for house flipping unless you get an amazing deal on a property and put in a lot of work.  However long term investments Real Estate is still the king!  Buy a property and rent it out, year over year the home values will continue to rise and in some situations your rental unit will not cost you a dime because of the rent you receive.

In South Florida there is a big market in Multi-Family Homes...Meaning Duplex, Tri-Plex and Four-Plex units!  Have you considered buying a duplex living in half and renting out the other unit?  May make your mortgage payment $0.  According to many analysts in South Florida and Fort Lauderdale there is a big return on investment year over year when it comes to multi-family units.

Ready to purchase an investment property in South Florida and Fort Lauderdale?  Contact Jay Cermak Top Fort Lauderdale Real Estate Agent with The Edwards Real Estate Group at 954.235.3589!