Throughout the country, approximately 1 in 5 home buyers were investors as opposed to homesteaders in Q3 2021. This percentage is actually an increase from the 16.1% figure observed in Q2 2021. When compared to Q3 2020, this percentage is almost double the 11.2% of investors seen then. Overall, investors purchased a record 90,215 homes nationwide in Q3 2021. This equates to a 80.2% increase year-over-year.
How does Florida compare to the nation?
Eight Florida metropolitan areas were included in this analysis and the percentage of investor purchased homes was even greater than the national average. As indicated below, only Fort Lauderdale came in close to the national average in Q3 2021:
- Fort Lauderdale: 18.6% (median sales price of $295,000)
- Jacksonville: 28.3% (median sales price of $253,000)
- Miami: 28.1% (median sales price of $375,000)
- Orlando: 23.5% (median sales price of $300,000)
- Tampa: 24.5% (median sales price of $282,100)
- West Palm Beach: 15.4% (median sales price of $335,000)
Nationwide, the typical investor-purchased home cost $438,770, with 3 out of 4 (76.8%) being cash sales. Needless to say, these cash-rich investors are presenting additional competition and challenges for individual home buyers. Year-to-year in September, average monthly rents rose 10.7% across the country. This has resulted in even higher demand from investors. During this same time, the average home sale price increased by 13.9%.
Two Florida cities (Jacksonville: #4 & Miami: #5) were ranked in the top 5 in the country for investor-purchased homes in Q3 2021. With more Americans relocating to The Sunshine State, the appeal for real estate investors will continue to remain strong for the foreseeable future.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!