The housing prices in Miami increase to 6.1 percent that is still less to the 6.5% bump in the October 2016. Broward, Miami-Dade and Palm Beach have displayed bigger growth rate than the national average of 5.6 %, but it is not as high as the top markets. Portland, Seattle and Denver continue to perform the best for the tenth consecutive month, with an increase in price by 10.4%, 10.1% and 8.7% in November respectively.
If you are planning to buy some property whether for investment or housing purposes, then this is the right time. The prices are said to rise in coming months in South Florida. Jim Flood, Regional manager for Supreme Lending in Forte Lauderdale says that people are going to see best statements that they have seen in January.
Interest rates would rise, but it would not discourage the investors to invest their money in real estate business. According to the experts’ outlook for 2017, housing prices will rise to an inch but luxury sector could take a hit.
With 30year flood expectancy, fixed mortagage rate of 3.29% that is said to rise to 5% by the summer can short the buying capacity of some consumers but still it would not be enough to stop the housing recovery started in 2012. The South Florida real state business is going to flourish in coming few years.
Supply and demand factor
As the housing prices will rise, the middle income owners will try to find suitable single family houses at 50,000$. This will be the main reason why the market value will keep climbing higher. When there is growing demand and no new pipeline to meet this demand, it always pushes the prices up, says the Jack Macabe, a housing agent in Deerfield Beach.
Luxury sector:
The thousands of high end condos are built through the Florida can hurt the prices of luxury sector. People who are selling luxury buildings have to cut their prices
Less foreign buyer influence:
As the dollar continues to strengthen, it would be difficult for the foreigners to invest in the United States of America. The slow down process of foreign investors started in 2012 and it will become more evident in 2017.
Under the administration of President Donald Trump, greater deregulation is expected that can loose investors purse strings and it could bring the financing back that would induce domestic buyers, said McCabe.
