The Miami-Dade area may see its real estate market continue to expand and improve as we move in to 2015. According to data released by the Federal Deposit Insurance Corp. (FDIC), construction lending for both commercial and residential grew at four percent, to $223.2 billion, quarter over quarter in the second quarter this year, the largest uptick since its lowest reading of $201.5 billion in the first quarter of 2013. One to four family home construction lending saw an increase of over five percent to $48.2 billion from the first quarter of this year. Similarly, office vacancies in the largest U.S. cities dipped to 16.8%, off their fresh highs of 17.6% in 2010, according to real estate data firm Reis. 
Although construction lending is on the upswing, it has a long ways to go before it even gets to be half of its pre crisis level. Before the housing bubble burst lending exceeded $600 billion, a level not likely to be seen for some time. However, this figure suggests there is a broad upside for the continued growth in the construction lending space as we move in to the new year. As banks seek to put their capital to work, home builders and lenders say they’ve already seen financial institutions become more comfortable lending.
This augmentation in creditors willingness to loan should help prop up a still fairly weak real estate market. Normally home construction accounts for five percent of the U.S. GDP, while this year’s second quarter reading was just a hair over three percent. However, as consumer wages and sentiment continue to rise there should be fresh demand to meet the growing supply of new single and multi-family home projects. According to Scott Laurie, CEO of Olson Co., a California builder, the market for borrowing and building is the best it has been since the start of the recovery.
With the current supply levels, and still relatively weak demand, now is looking like a great time to get in before prices begin to catch their pre-crisis levels. If you’re interested in Miami Real Estate please feel free to contact a Miami RE/MAX agent today for more information on opportunities in one of the world’s most desirable communities.
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