Real estate market is going strong and is expected to have good conditions through 2017
If you are a potential buyer of a new home, or you are considering selling your own home (or both!), you probably know that the real estate market is going strong and has been for the last few months. A strong economy and an increase in employment mean that many more consumers have been able to enter the real estate market.
According to a new study discussed by Florida Realtors, these favorable real estate conditions will most likely continue through the next three years into 2017!
Urban Land Institute Center for Capital Markets and Real Estate indicated in a recent survey that “overall housing market projected to continue expanding at steady levels through 2017.”
These results were based off of thoughts from 49 of the real estate industry’s top analysts and economists.
While real estate indicators expected to be better than their 20-year real indicators for the remainder of 2015, commercial property price growth, equity REIT returns, retail availability rates and single-family housing starts are not expected to do as well.
“The latest Consensus Forecast has picked up on recent growth concerns and stock market corrections around the world,” says William Maher, ULI leader. “The U.S. economy and real estate markets are in much better shape than most other countries, but global economies and capital markets are increasingly inter-related.
“Still, the vast majority of indicators in the forecast indicate favorable economic and capital markets in the U.S., as well as moderately strong real estate fundamentals and investment returns.”
Some other highlights of the survey included that home prices are expected to moderate to a 5 percent growth rate this year, 4.3 percent in 2016 and 3.9 percent in 2017, commercial real estate prices are forecasted to rise by 10 percent in 2015 and then slow to a 6 percent increase in 2016 and to 4.5 percent in 2017 – below the long-term average growth rate, an single-family housing starts are projected to increase to 745,000 in 2015, 842,000 in 2016 and 900,000 in 2017. Despite the increases, starts are expected to remain below the 20-year average.
Is this optimism inspiring you to buy a new home? Or perhaps sell yours? Clearly, now is a great time to do so!
If you even need more inspiration, check out the beautiful properties available in Miami today and contact one of our RE/MAX Paradise agents.