As the United States economy continues to roll on, so to do consumer’s attitudes towards the future. According to the University of Florida consumer sentiment, formerly know as confidence, amongst Floridians reached a level of 83. A reading of this magnitude hasn’t been seen since 2007, before the recession. Similarly, the jobs report last week showed the economy adding 248,000 jobs, beating estimates of 215,000, and an unemployment reading under 6% for the first time since before the financial crisis. Although geopolitical events continue to shake up international markets, the United States is a safe heaven for both domestic and international investors.
The University survey echoes the responses of over 400 Floridians from all woks of life. Overall, the people of Florida were slightly more comfortable, on average, than a year ago. However, a pickup in the overall economic picture has some negative, however natural, implications for real estate markets. As the economy continues to strengthen, the Fed seems likely to raise interest rates to control inflation. Rising interest rates are often a catalyst for increased mortgage rates. With the cost of a mortgage on the rise, look for a natural flattening, or even slight dip, in real estate prices in the coming year.
With what looks to be stagnant price inflation in the coming year, now is a great time to check out Miami real estate. Miami has many unique neighborhoods and luxury buildings that are still undervalued compared to their international rivals. If you’re interested in the Miami-Dade area please contact a RE/MAX agent today with any questions or concerns!