Those who have predicted a huge dip in the real estate market in southwest Florida this year have so far been mistaken. Instead, real estate growth for both commercial and residential properties continues to defy predictions and expectations. The year-over-year change in the market has been both positive and significant.
In March of 2022, nearly 1,000 real estate professionals gathered to speak about current market trends and what’s expected for the future of real estate. Part of the discussion centered around the rising amount of building permits in various counties. Though the rise in permits isn’t technically sufficient to be classified as a boom, it is indicative of a very good market.
Taking advantage of a Prosperous Market
Now may be the perfect time to chase real estate deals and purchase properties in southwest Florida, when there is not a looming risk of a huge dip or crash. However, leading real estate professionals still recommend caution to investors in the industrial segment. Though commercial and residential real estate is still dependable and prosperous, the same may not be true for industrial real estate. As such, experts still recommend caution to those who want to invest in industrial real estate.
In industrial real estate, bigger deals are happening as large distribution businesses enter the market. But the assets are not out there for purchase, which means sales volume in the industrial segment is decreasing.
To help meet rising demand, many counties are ramping up warehouse construction. So there is certainly some room for profit in the industry, but investors should still exercise caution since industrial real estate often comes with a higher cost (and thus a higher risk) than other types of real estate. But still, the risks involved with investing in industrial real estate are quite low this year.
A Word About the Residential Sector
According to three savvy market analysts, the remainder of the year is likely to be favorable for investors in the residential real estate industry in southwest Florida. Though almost every real estate expert agrees that 2022 won’t be as crazy as 2021 in terms of real estate demand and cost, the market will continue to be strong. It’s unlikely that the current generation will ever see another year like 2021, so it’s unfair to compare 2022 to a once-in-a-lifetime event.
Even though real estate sales in 2022 are going down compared to 2021, that isn’t a problem. There is certainly not a demand issue in residential real estate in the southwestern part of Florida. Many people are drawn to the area and the exclusivity it provides because not everyone can afford it. That’s because real estate is getting more expensive in the area.
Even though the cost of real estate precludes some from buying homes in this area, there are still plenty of people who can afford the increased cost of housing. They continue to flock to the southwestern part of Florida to snatch up the limited available real estate in the area.
Predicting the Future of Real Estate
It’s impossible to predict the future, especially in real estate. But it is possible to look at historic trends and take advice from respected analysts in the real estate and development sectors when making real estate investment decisions. LSI Companies offers a lot of helpful market information in its digital book titled Market Trends of Southwest Florida Digital Data Book 2022. You can download the book for free to find helpful statistics and numbers such as the costs of lumber, the number of residential permits by county, and new home construction numbers.
The more you know about the current state of the real estate market in southwest Florida, the easier it is to make wise investment decisions. As the old saying goes, “knowledge is power.”
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