Hope everyone had a great weekend and enjoyed the fabulous weather that stretched all the way from the Northeast down to sunny South Florida. Temperatures were not the only thing on the rise. Philip and I have experienced a slight increase in the number of showing requests in the past 4-5 days. We are noticing a trend that people viewing property are more interested in rentals these days than purchasing a home. Almost every showing we did over the weekend was for either seasonal or yearly rentals.
People seemingly want to “test drive” the property these days before they take the plunge and purchase. With so much inventory at their disposal, and so many sellers willingly renting their listed homes, people are holding off on making a commitment on buying a home and renting with much less risk. I surveyed a few of the people this weekend by asking them “What is the main factor stopping them from purchasing a home at this time?” Overwhelmingly, they all said the same thing…”Prices continue to drop…so why buy now”?
They all want to have the South Florida experience, but most were genuinely concerned with making the investment. A few want to make sure they even like the area before they purchase their second home here, another couple we worked with wanted to be certain the community they were renting in was going to be the right fit for their family, and the rest just want the lifestyle without the financial risk. All betting that home prices will continue to decline, and that is when they will make their move.
We also see steady traffic coming from our neighbors to the north. Canadians continue to flock to Florida, predominantly into Palm Beach County. Our colleagues in the Miami/Dade area report that they are seeing an increase in European and South American Buyers/Investors in their market due to the weak dollar. Taking advantage of the currency situation, overseas buyers are mostly interested in making their purchases in America’s most “Trendy” and “Hip” cities such as Miami, New York, and Los Angeles. This year, brokers in the Hamptons claim that a majority of this season’s coveted summer rentals were booked by Europeans. Seems like the majority of these investors want only the “big-city”areas that offer them world renowned fine dining, luxury shopping, arts & culture, and an active nightlife. I’m guessing… it might be safe to assume, that it will be a while before they discover the suburbs!!!
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The information herein is believed to be accurate but not guaranteed and may be subject to errors, omissions and changes without notice. This is not to be construed as a solicitation of property presently listed for sale.
All information is derived from the Palm Beach County Property Appraisers website and the MLS.
