🌴 Florida's Crisis and Vanishing Flipping Gains
🌴 Florida's Crisis and Vanishing Flipping Gains
Florida's unfolding real estate crisis and the truth behind the vanishing gains in the house-flipping market.
Is South Florida on the skids? They had a cringe-worthy $1 billion drop in resi sales volume - that's a massive 14% lower than last year!
Miami-Dade, Broward, and Palm Beach counties aren't sipping mojitos on the beach - they're busy with their calculator app trying to figure out what happened.
Meanwhile, it seems like central banks around the world have decided we've had enough fun.
They're raising the bar, and by bar, we mean interest rates.
So what does this mean for you?
Well with a lot of markets suffering from a slump in sales volume and rising interest rates, there will be a lot more opportunities for low-cost acquisitions.
In this edition of the AltReports:
🌴 Florida’s Flip Flop
😭 Stingy Central Banks
🙃 Flipping Margins
🏢 Office-To-Apartment Success
🏷️ Below-Market Deals
Video of the Week: Biggest Myth About the 2023 Real Estate Market
Chart of the Week: CRE is Alive and Well
Podcast of the Week: Complete Guide to Real Estate Penny Stocks & REITS
South Florida resi sales volume drops by $1B in May
South Florida's housing market just hit a speed bump, with the dollar volume of residential sales skidding down by a cool billion (that's 14% lower than last year) in May.
Miami-Dade, Broward, and Palm Beach counties all felt the heat, with home and condo sales across the board hitting the brakes. But it's not all doom and gloom!
Single-family home prices in Miami-Dade and Palm Beach are still on the up and up.
Central Banks Around the World Just Made Borrowing Costs More Expensive
Central banks around the world are cranking up their interest rates. The Fed has already doubled theirs. Over in the UK, the Bank of England is following suit.
And not to be left out, the European Central Bank is also joining the hike party. The result? It's making it more expensive for consumers and businesses to borrow money.
This tightening is happening a bit too fast for some people's liking, stirring up fears of financial instability.
Flippers Accounted for 9% of Q1 Home Sales Nationwide
House flipping's back in style - well, sorta... Flippers made up 9% of all home sales in Q1 2023, that's the highest since 2006!
But, profits? Meh, not so hot. They're still scraping the bottom of the barrel over the past decade.
Flippers' financial woes ain't over yet, but at least they've stopped the bleeding.