Relocating to the Florida Keys
The Keys: Get there Before the Next Boom
The real estate market throughout Florida as in many other area of the country, looks like a dangerous place with the potential that prices may continue to fall…with the possible exception of the Florida Keys. Yes, it is true that during the incredibly oversold market commencing in 2003 and on, prices within Florida spiked only to come tumbling down during 2007 which continues to this day. This was the inevitable consequence of bad lending decisions coupled with buyers lacking the wherewithal to carry the home. This happened virtually everywhere else in the country.
The Florida Keys are Exceptional and an Exception
One of the main strengths of that market protecting the Keys from some of the dangers in the current real estate market is the fact that the vacation rental market environment is a life preserver to the real estate investor, despite the fact that many have chosen to reside there on a permanent basis. In other words, many of the properties whether condos or homes, are still attractive vacation destinations. As long as a property can be rented, the investment is self sustaining. The Keys can always be rented, depending upon the area, on a weekly or monthly basis. This makes them more attractive for investment purposes than the typical home purchased by the home owner as a primary residence anywhere else in the country. In other words, the Florida Keys real estate market was never in a “bust” situation.
The facts bear this out. According to Standard and Poors.com, aggregate real estate prices throughout the U.S., comparing 2000 with 2010 were only 2.6% greater in 2010 than during 2000. While actual sales price in the Florida Keys were 52.1% higher in 2010 than in 2000 ($274,995 vs. $418,209)! Certainly there were declines in Keys real estate prices on a comparative basis during the last half of the decade. This only serves to point up the fact that Keys real estate is very high priced and even when it had declined, prices remain at levels significantly above 2000.
Moreover, this data includes all Keys “residential” real estate, which also takes in vacation rental property, such as homes or condos that are rented out. If that data were available for comparison, it is highly likely that the historical prices would even have exceeded 52%. However, it is important to point out that certain other areas such as New York City and Washington, DC also fared very well over the decade because of explosive Wall Street wealth and the growth of the federal government which affected real estate in the greater Washington DC area.
The real estate market throughout Florida as in many other area of the country, looks like a dangerous place with the potential that prices may continue to fall…with the possible exception of the Florida Keys. Yes, it is true that during the incredibly oversold market commencing in 2003 and on, prices within Florida spiked only to come tumbling down during 2007 which continues to this day. This was the inevitable consequence of bad lending decisions coupled with buyers lacking the wherewithal to carry the home. This happened virtually everywhere else in the country.
The Florida Keys are Exceptional and an Exception
One of the main strengths of that market protecting the Keys from some of the dangers in the current real estate market is the fact that the vacation rental market environment is a life preserver to the real estate investor, despite the fact that many have chosen to reside there on a permanent basis. In other words, many of the properties whether condos or homes, are still attractive vacation destinations. As long as a property can be rented, the investment is self sustaining. The Keys can always be rented, depending upon the area, on a weekly or monthly basis. This makes them more attractive for investment purposes than the typical home purchased by the home owner as a primary residence anywhere else in the country. In other words, the Florida Keys real estate market was never in a “bust” situation.
The facts bear this out. According to Standard and Poors.com, aggregate real estate prices throughout the U.S., comparing 2000 with 2010 were only 2.6% greater in 2010 than during 2000. While actual sales price in the Florida Keys were 52.1% higher in 2010 than in 2000 ($274,995 vs. $418,209)! Certainly there were declines in Keys real estate prices on a comparative basis during the last half of the decade. This only serves to point up the fact that Keys real estate is very high priced and even when it had declined, prices remain at levels significantly above 2000.
Moreover, this data includes all Keys “residential” real estate, which also takes in vacation rental property, such as homes or condos that are rented out. If that data were available for comparison, it is highly likely that the historical prices would even have exceeded 52%. However, it is important to point out that certain other areas such as New York City and Washington, DC also fared very well over the decade because of explosive Wall Street wealth and the growth of the federal government which affected real estate in the greater Washington DC area.