Will 2016 be the best year yet for South Florida real estate?
Industry experts are confident that 2016 will be an excellent year for South Florida real estate. Law firm Berger Singerman polled 100 top players in the real estate industry, including developers, realtors, investors, lenders and contractors, to determine their expectations for the new year. Many are certain that this year will be another good one, with numerous survey respondents believing that 2016 will not only make a smooth transition from 2015, but will also be a strong year for real estate. Still, there are many who doubt that the positive trend will continue.
Fearing a housing bubble, some have expressed doubt regarding the health of South Florida’s real estate market, particularly where condos are concerned. According to the Berger Singerman survey, only 26 percent of respondents said condo development will produce the highest returns in 2016. So, what’s behind the others’ lack of confidence and is there a reason to be concerned?
It’s no secret that international buyers have fueled South Florida’s real estate growth. Given that, the surveyors wanted to how respondents viewed the health of foreign buyers. According to the results, 60 percent of respondents said that “global economic issues and uncertainties” are a primary reason for their concern about the growth of the market.
While no one knows for sure how the international economy as a whole will perform this year, it doesn’t seem to be slowing down real estate investors. According to the Miami Association of Realtors, foreign buyers spent $6.1 billion in 2015 on local real estate transactions, 36 percent of which were on investment properties.
“Miami real estate offers security of investment for many international buyers who face economic uncertainty at home. A gateway to the world with the nation’s highest concentration of foreign-born residents, Miami is also a major center for high-impact commercial development,” said Mark Sadek, the 2016 MIAMI Chairman of the Board.
Overall, the reality is that South Florida’s real estate market remains healthy and is predicted to continue to perform well. If total real estate sales are any indication, South Florida is poised to stay at the top. According to Zillow, the Miami-Ft. Lauderdale area ranked the fifth most valuable market in the United States in 2015 with a total of $773 billion in sales.
If you would like more information on purchasing a property in Miami, or the market outlook, please schedule a free consultation with Suzanne Feanny.
Nehamas, N. (6 January 2016). Survey: 2016 won’t turn real estate market upside down in South Florida. Retrieved from http://www.miamiherald.com/news/business/real-estate-news/article53285015.html#storylink=cpy
Josh Boak and Jennifer Kay, Associated Press (19 January 2016), As Wealthy Brazilians Snap up Miami Real Estate, Few Benefit. Retrieved on January 21, 2016 from http://abcnews.go.com/Business/wireStory/wealthy-brazilians-snap-miami-real-estate-benefit-36375943
Miami Association of Realtors, (15 January 2016), Brazil Leads Global Consumers Searching for South Florida Real Estate Miami. Retrieved on January 21, 2016 from http://www.miamire.com/news/2016/01/15/brazil-leads-global-consumers-searching-for-south-florida-real-estate-miami-market-is-no.-1-on-realtor.com