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For many years Florida homebuyers looked like Northerners with gray hair, searching for a place to spend their retirement years—either seasonally or full time.  Then 5 or 6 years ago, “flippers” arrived on the scene looking for quick profits.  They would buy anything with a sign in the yard, and put it back on the market at a much higher price.  It was a time of chaos.

For the past several years, homebuyers of any kind were hard to find in Southwest Florida.  The flippers were in foreclosure, and the gray-haired Northerners were wary of a plunging housing market.  It didn’t help that their retirement nest eggs were devastated by the stock market, and their Northern homes were virtually unmarketable even if they wanted to move south.

This summer and fall, we have seen a steady stream of another kind of home buyer—the investor who sees current home prices as an unbelievable bargain.  It doesn’t hurt that their nest eggs have recovered a bit, interest rates are at a historic low, and the stock market has been sluggish.  This new home buyer is looking primarily in the “under $250,000” housing market, as a way to get their foot in the door in this highly desirable area.  They figure they can always “trade up” later on.

Many of these investors are within 10 years of retirement, and plan to use their new home as a vacation getaway, family retreat, or rent it out for a few years until they are ready to make their move.  They see current home prices as a rare opportunity to “get in at the bottom”.

There are many excellent reasons to own a home in Southwest Florida.  Add long term investment to the list.