SW FL Real Estate Market Is Cooling--Longer DOM--Flattening Rents

[John Thedford]

Just looking over the market stats, it appears the market is slowing some. DOM are increasing (not to outrageous times) but this is definitely a difference. Properties under 150K still have the lowest DOM but the problem is it is TOUGH to find any quality units at that price (I am picky so my definition of quality is higher than many). I still see some people paying what I believe to be too much money and their margins may not exist, particularly those in the seasonal rental arena. Annuals rental returns are definitely lower due to increased prices, flattening rents, and increased operating expenses. Newer inexperienced landlords are losing LOTS of money by overpricing units. I personally know of at least two overpriced units I have watched over the past months that are still vacant (I have approached the owner trying to buy them several times).  The owners are determined to get more than market rents. If you are considering investing in SW FL, which I believe is a great place to live and invest, be careful and make sure you understand the trends. They will help guide your decision.