The four factors that will influence South Florida’s real estate market in 2016
For South Florida’s real estate market, 2016 looks to be a promising year. No one can definitively predict the future of the market a year out, but trends suggest it will continue to grow. Here’s a look at four factors that will influence South Florida’s real estate market in 2016.
Instability Abroad Will Send Wealthy Investors to South Florida
As the world abroad continues to become less stable, the wealthiest individuals in the world will continue to invest in U.S. real estate, including South Florida properties. Buying a luxury home in South Florida doesn’t just give the world’s one percent a place to relax away, but it also lets them invest in assets that will gain value and are less volatile than international stock markets currently are.
Millennials Will Influence What Homes Sell
Millennials are beginning to purchase homes in ever-increasing numbers, and their tastes will begin to have an influence over what features are included in homes. Homeowners that want to sell their houses quickly will need to include smart technology and other updates to attract potential buyers in this demographic. Millennials are willing to pay for modern homes, so those will start to dominate the housing market.
Miami’s Emergence as a Global City Will Increase Values
Miami is quickly becoming a globally influential city, and that’s good news for the property owners throughout South Florida. As Miami’s influence grows, more businesses will open up offices in the city. That will help the commercial real estate market in the city, and the employees that move to the city will give the residential market a boost. As property values in Miami rise, those outside of the city’s limits will slowly follow suit.
Stock Markets and Interest Rates Will Determine Buyers’ Funds
Both the stock markets and interest rates will have a significant effect on home buyers’ ability to purchase homes. As long as the markets continue to do well and interest rates remain low, people will have more access to funds to purchase homes with. This would translate into higher demand and higher home prices in 2016.
This year looks to be a good year for South Florida’s real estate market. As wealthy international investors, Millennials and companies purchase property in Miami and the rest of South Florida, and stocks increase while interest rates remain low, property values should increase in 2016.