Mini bubble or true growth for villa prices?
The Florida market looks more promising than it has done in a long time if you were planning on waiting for true stable growth before purchasing a vacation rental in the Orlando or Davenport area.
However, 41 percent of house owners still owe more on their mortgage than the house is worth. There are some initiatives like the Hardest Hit Fund that help out with childcare, utilities, legal costs, employment and healthcare – but when will this money run out? It’s still a risky time in the market when all of the facts and figures are considered. Is the so-called stability just government funded out of a resource pool that will dry up?
On the flip-side, the annual increase in the average house price is up 22 percent from last year. Unfortunately I don’t have figures for villa prices to hand. That sort of growth isn’t sustainable but it shows a sign of trust in the market for potential buyers. Most houses have multiple offers for the buyer’s consideration. Talking of the flip-side – house flipping is back in vogue, which will probably do nothing to help the market stability.
So I’ll still sit on the fence with regards to advice on villa prices – but if you can buy now and commit long term with dedication to vacation rental marketing, you are sure to at least cover the interest on the mortgage.