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Increased transactions and prices reported by Realtors are big signs that the Southwest Florida real estate economy is rebounding.
But there are other signs of a rebound too. Attorneys who specialize in real estate have seen a pickup in tax deed sales, speculative homebuilding and an active rental market in Southwest Florida.
Consider tax-deed sales. “That's a weird little niche market that in the last four to six months has picked up,” says Michael Randolph, an attorney with GrayRobinson in Fort Myers who specializes in real estate and construction.
Investors buy tax deeds on delinquent property taxes from the tax collector at auction with the hopes of foreclosing on properties later. Randolph says investors are encouraged by future home appreciation, which rewards tax deed buyers.
His law partner, Derek Rooney, says homebuilders are building houses without buyers lined up in advance. Such speculative building came to a halt during the downturn, but has returned in the recovery. Builders are paying cash for the lots and banks or groups of investors are financing the construction.
Another positive sign: The rental market for single-family homes is getting so tight that homeowners can rent their homes within a week of the listing. “There's not enough decent housing,” says Randolph.
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