What will a hot state for real estate be in 2016? 400 realtors at the 2016 Florida Real Estate Trends event held Thursday during Florida Realtors®Mid-Winter Business Meetings wondered last week if it would be Florida. According to Jonathan Smoke, chief economist of realtor.com, Florida will be hot in the real estate market in this coming year.
“Florida is positioned to become one of the hottest spots in the country with rising demand, positive gains in recovery, really good fundamentals and positive momentum,” said Jonathan Smoke, chief economist of realtor.com®. The Sunshine State not only offers you hot weather, but it’s a hot state for real estate.
Referring to the national market, “Home sales have pretty much recovered to their normal levels,” he said.
Smoke also pointed out how inventory is low because homes are selling so quickly. “Fundamentally, we are experiencing a market with not enough to sell,” Smoke said. “We are forecasting slightly better growth for construction and new home growth, but still not to the usual supply, which is putting pressure on the existing home supply (and existing home prices). On realtor.com, every single month in 2015 had less inventory and inventory was moving more rapidly – and we’re seeing the same in January 2016.” The past year was a popular time to buy, following economic recovery.
Smoke along with expert economist Dr. Elliot Eisenberg agree that the market to watch next year is millennials and baby boomers.
Overall, Florida’s real estate is expected to continue to go in a positive direction. “We expect home sales to increase 8-10 percent in 2016, while home prices are likely to rise about 5 percent,” Dr. Brad O’Connor, chief economist for Florida Realtors said.
It is always reassuring to hear that there is a bright future ahead for real estate if you are considering buying or selling this year. If you are looking for a place, it is clear that the hot state for real estate in 2016 is Florida! Learn more about Miami real estate and contact RE/MAX Paradise today!