Millennials are renting instead of buying. Baby boomers are staying put and aging in place. Builders literally built fewer homes than ever before for 15 years, therefore inventory is low. In other words, finding just one simple answer to what’s going on with our Real Estate Market is pretty tough right now.
Here, in Indian River County, our situation is a bit different from some other parts of Florida. Traditionally, most of our buyer pool consisted of part-timers and retirees. Well, that’s simply not the case any longer. People in the mid-’50s are pulling up stakes from some of the more expensive coastal markets in other areas of the country, and even in Florida, and they are moving to Indian River County.
While here in Vero Beach, we are thriving, we don’t have the high rises all along the beach, we don’t have the same traffic and congestion some other coastal areas are experiencing, and we do have a thriving art and recreation culture.
Builders have flocked into our area, snapping up vacant lots in existing communities, and vacant land as well. Some of our older landowners want to retire. They are tired of caring for farms and large parcels of land, and they have put them on the market.
Overall things are moving here. But if you are a buyer, out looking for the perfect house with all the upgrades, you might be finding it difficult to get that one special house in the price range you were hoping to stay within. Although, now that the Fed has halted the interest rates hikes, that appears to be pushing our market forward again.
For those of you who are still renting, we ask WHY? With a capital W. Yes, there are costs associated with owning a home and one should always consider all aspects of home ownership before jumping in feet first. BUT, in our current rental market, it makes almost no sense to rent a new home when you can own one for the same, or less money than a lease payment and deposits.
Granted you might not be able to afford your dream home with stainless appliances and granite countertops, but those are things you can add on later. Buy something you can live in for now, that’s in a decent location, save up and do a few upgrades at a time and when the market is right, sell your current home and use the equity from it to purchase a nicer home. Better yet, keep your current home, rent it out, get income from the rental and then buy a bigger nicer home.
Abbe and Alan Chane
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