Today, I received 3 calls from landlords wanting to know why their rentals are still empty. I spent some time explaining what is happening here with the prices and the complexes. All three lowered their asking price. I think reality is setting in.
I am a Realtor in Florida. I have alot of investors that I deal with. They bought property at the top. Now we are getting close to the bottom. The main problem that they face is that rental prices have not kept up with the rise in home prices. The majority of investors are losing hundreds, if not thousands of dollars a month. The question is How Long Can This Go On For.
I am starting to see investors want to get out of their properties, even if they have to take a loss. Also, there are a certain number that are willing to give them back to the banks. If these properties are sold below market value, the comps will go down, thus will housing prices.
The sad part is that landlords and owners are not being realistic. They have some inflated idea of their properties value and will not lower the price. The end result is that they maintain their prices, sit ion the property and then reach a point when they are forced to unload them for less then they could have gotten.
As Realtors, it is our job to educate sellers and to the market conditions. By effectively helping them market their property we will build  a lasting relationship.
Home Prices in Florida have been steadily decreasing. There are a few important reasons.
Three years ago the boom was at it’s high point. There was easy money, the large volume of investors, people upgrading houses and low insurance rates.
After the November hurricanes, this all came to an end. Prices reached the point where the major investors pulled out, rates were climbing and there were other factors.
While home prices became unaffordable for many, the rental rates did not keep up with the increase in prices, so many people were forced to rent.
The Florida Real Estate market is going through a transation period. You need an understanding of the changes that are occuring now and the effect it will have on the future.