How Mortgage Rates are Affecting Property Management
With the recent surge in mortgage rates, rising from 3-7% over the last year, renters are opting to renew their lease than purchase a single-family home; most looking to rent at least another year before considering buying. With the real estate market cooling down, homeowners are hesitant to sell either from fear of losing money in the sale or having to turn around and buy at a high-interest rate.
With the market settling down, rent has also seen a slight decrease. However, rental rates are still 1.5x higher than the pre-covid market.
Now that mortgage rates are reaching numbers we haven't seen in the last 20 years, rentals will be in more demand. Investors have been keeping an eye on Florida's real estate market and there's been a heavy increase in Buy-to-Rent (BTR) investments for this reason! BTR purchases made up between 1/4-1/3 of home sales in some major cities.
Are you interested in purchasing rental properties Florida? You can search the MLS here for available properties.
If you already have a invesntment property that you need property management for in the Tampa/St. Pete area, feel free to reachout so we can conduct a free Rental Market Analysys to see what your property could be renting for right now.