Updated: May 18
It goes without saying that the Real Estate Market is on FIRE throughout several US States these last post-pandemic months. And it all indicates that this sellers' wave won't stop anytime soon.
As property inventory shrinks--mainly single-family homes and townhouses--the few sellers left take advantage of it and list their properties well beyond fair market prices. As if that wasn't enough, buyers, mostly out of state, place above price offers for dozens of thousands of dollars above the asking prices. It's probably easier to speak to President Biden than to get a hold of listing agents these last days. Your buyer's offer has to be something really out of ordinary to get their attention, otherwise just forget about it. And I don't blame them. Based on our Real Estate firm's agents experience, it would take sometimes minutes for you to get offers once you list a property in MLS (Multiple Listing Service), let alone phone calls. I think we need insurance coverage not only to property flood now, but also "calls flood" too!
Although it has been quite a mission to find and purchase ideal vacation homes especially in Miami-Dade and Broward counties, if you dig deeper and persevere, one of these precious gems can be yours in no time. You just need to find the right Real Estate agent for the mission. So, what are you waiting for?
Now, as travelers feel increasingly safer to get back to their dream vacation trips with over 100,000,000 Americans fully vaccinated, vacation rental homeowners are seeing their properties' calendars practically fully booked across at least the next 30 to 60 upcoming days.
Another huge attractive is the increase on the nightly rate mainly because of vacation homes shortage, "Travel Addicts" who need to be on-the-go almost 24/7, and foreigners coming to the US probably to get vaccinated as they unfortunately don't have access to COVID-19 vaccines in their countries.
The "sunshine" State of Florida vacation homes are experiencing an unprecedented occupancy rate in certain areas, especially in South Florida. Nightly rates have increased at least 20 to 25% when compared to pre-pandemic rates.
All things considered, you will most likely spend a few dozens of thousands of dollars more to buy an ideal vacation home in prime vacation rental areas now; however, the well above average occupancy rate combined with the increase of at least 20 to 25% in its nightly average rate can compensate for this hype in its selling price. Even if we're close to "bursting this bubble", vacation rental homeowners will not feel the hit since their income-producing properties revenue come entirely from tourism and its loyal guests booking stunning homes, and not from buying for less and selling for more (aka flipping).
So, unless we experience another COVID-19 like pandemic wave or you don't hire a solid, successful, and results-driven property management company, the vacation rental investor will get out of the advent of a Real Estate crash completely immune!
So, what are you waiting for? Dare to dive into the vacation rental world? You bet!
Igor Scardua is the CEO and Founder of All Seasons Vacation Rental, President and Licensed Community Association Manager (CAM) at Wise House Property Management, and Licensed Qualifying Real Estate Broker of Scardua Realty, a Real Estate firm in Florida with Real Estate Sales Associates working with Residential Sales and Leases throughout South Florida in the State of Florida.