New year, new real estate predictions. For South Florida, those predictions look positive. A recent survey by Berger Singerman shows that South Florida Real Estate in 2016 will defy slowing sales and price gains in the condo market to be a strong year. Berger Singerman is a law firm and their survey polled about 100 top developers, Realtors, investors, lenders and contractors, asking them how they think the new year will look for real estate.
“The overall consensus is that things are going to continue in a similar direction,” said Jeffrey Margolis, a partner at the firm. “2016’s going to look a lot like 2015. So while everyone is asking, ‘Are we in a bubble? Is it all going to come crashing down?,’ the smart money says that’s not the case.”
Around 42 percent of respondents think 2016 will be “somewhat better” than 2015, and 37 percent foresee “no change.” So although 2016 should be strong like 2015, it will not be extremely better.
South Florida’s economy and real estate market depend on Latin American and European investors or homebuyers. However, their slower economies might slow South Florida a bit, especially when it comes to condos. The survey showed concern over foreign affects on Florida Real Estate in 2016 as well. More than 60 percent of those polled said that they lack some confidence in the market because of “global economic conditions and uncertainty”.
Developers plan to build all kinds of buildings in this coming year as well. Besides condos, hotel and hospitality and retail should produce strong returns too.
“We’re definitely seeing more diversity in the market,” Shuster said. “Following the multi-family rebound, people have a feeling that these other areas are going to take off too.”
To summarize, Florida Real Estate in 2016 will be strong on both ends. It should be a great year for you to buy the house in Miami you have been eyeing, so contact RE/MAX Paradise today!