There are many people who analyze and predict the future of real estate. This includes homeowners, buyers, economists, politicians and more. However, an important one to pay attention to is real estate firms thoughts on the future. Real estate professionals who are involved in the market each day have valuable opinions on what is to come. According to the National Association of Realtors 2016 Profile of Real Estate Firms, the majority of real estate firms are optimistic for real estate’s profit and growth.
“For a second year in a row, a majority of real estate firms have a positive outlook on profitability, with 91 percent of all firms expecting their net income to increase or remain the same over the next year,” says NAR President Tom Salomone, broker-owner of Real Estate II, Inc. in Coral Springs, Florida. “Although there is an overwhelmingly positive outlook, low inventory and high prices have led to an overall decrease in real estate firms’ sales volume since last year’s report. High home prices are holding back first-time buyers and low inventory means fewer sales at a time of increased Realtor membership.”
Most firms expect profitability of real estate activities to increase in the next year, and 43 percent predict competition will increase. Florida Realtors wrote that when firms were asked about their biggest challenges, “firms cited profitability (49 percent), keeping up with technology (48 percent), maintaining sufficient inventory (48 percent) and recruiting younger agents (36 percent).”
However, challenges are a natural part of any market and overall most real estate firms thoughts on the future are very positive. This indicates great things for the market, and shows how now and the next year are good times to get involved in real estate. Whether you are ready to sell or buy a Miami home, contact one of our RE/MAX Paradise agents today!