Here are a few things we can expect for the year to come:
First time Homebuyers will return to the market next year and they are millenials:The residual financial effects of recession-driven job losses and subsequent unemployment have impeded millennials’ entry into the home-owning market. In 2016, increases in employment opportunities will empower younger buyers to return to the market and fuel the continued housing recovery.
Both population and households will continue to grow at a slightly higher pace. Households headed by millenials will see significant growth as a reflection of economic gains. Millennials will also drive two-thirds of household formations over the next five years. Next year’s addition of millions of jobs and increased household formation will be the two key factors driving first-time buyer sales.
The Millenials are said to be about 90 million of the population, it is the largest generation we have ever seen in the USA. They make up about 29% of the population and 17% of households. They are the dominant percentage of active home shoppers and are more interested in urban areas.
Existing Home Sales will increase: Existing sales will grow as more people are purchasing properties driven by the belief that rates will only keep on increasing. While the majority of housing activity next year will be driven by baby boomers preparing for retirement, millennials will account for the highest percent of first-time home buyer sales in 2016.
Home Prices will go up: While the demand will be driven up by improved employment opportunities, the fact that there is a low inventory will cause an increase in the market prices.
Mortgage rates are most likely to increase: Mortgage rates will increase by mid year if not earlier as the Federal Reserve increases its target rate. Thirty year fixed rate mortgages will incline. One year adjustable rate mortgages (ARMs) will rise as well.
Friends hanging out in the back of a car.
Group Of Friends Jumping Of Beam On Rooftop
By Araceli Villanueva
This is from one of the many real estate events I attended in October – November, here some awesome notes taken. South Florida is composed by 38% foreign born population. Over all we have a very stable market. There are more sales now than ever before. Tourism economy brings in 100 billion dollars a year because we have the biggest tourism traffic from all over the world more than any other city; about 20 million visitors. The population is growing by 60k a year, in result to people moving to Miami. The city is made up of multiple neighborhoods, all areas are different. Miami is evolving and it is a great world gateway city to live in. Here are some of the biggest developers in town and their current projects.
He is the owner of Aventura Mall. He is currently building mixed projects in Miami and says that they are pockets with opportunity to grow. His projects, such as east of Biscayne Blvd and Sunny Isles are sold as a lifestyle and not just a place to live. He owns the Solomia Project.
Owns part of Bank United. He is s huge NYC developer who is bringing his experience down to Miami specifically the Aventura area. During the financial crisis in 2009, he decided to make an investment down here in the amount of 2.7 billion. He bought lots of apartments from Aventura to Brickell. He also bought a prime land of 180 acres known as Biscayne Landing.
He bought the Intercoastal mall on 35th Av and 163rd St he is planning to build a 2100 units, retail space.
He started building in 1999 and his style is to build with brand such as Armani, Trump, Porsche…
Porsche building has only 6 units left, Armani Casa is 60% sold, Sunny Isles is the Dubai of Miami. What makes Sunny Isles so amazing is the fact that everything was built all at the same time which makes it a neighborhood that was born as a whole.
His focus is mainly in Downtown Miami. There at lots of huge companies wanting to move their headquarters to Miami but there isn’t much space for them to move, he is focusing in trying to get the zoning in order to build seven buildings which will have available work spaces for those companies. Micro units in downtown are as little as 250 SqFt for the millenials.
Miami is the most international city in the entire United Sates, We also have more international residents than any other city in the US (65% are Hispanics). Since 2014, we have been able to maintain a 4 year record breaking sales meanwhile the prices are still at the same levels as 2004. That’s 11 years ago real estate prices!
Miami is ranked among the top 10 cities searched by international buyer, it is the third most researched city to be exact.The top International buyers are in the following order:
- Costa Rica
Since 2011, International Sales totaled 10,600 Properties; 22% of Miami’s residential market compared to 12% in Florida and 4% internationally. The Dollar volume of international sales totaled 36% of all local sales compared to 24% of Florida’s and 8% nationally; and all this is excluding pre-construction sales.
It seems like Americans may not be buying homes but foreigners sure are. Prices have been at the below nationwide market levels for 11 years and that could be changing soon. The time to buy is now!!!
Whenever you see world economy picking up, even the devalued properties are going to go up rather than down.
See complete conference regarding Who is Buying South Florida Real Estate at the Miami International Real Estate Congress 2015 by Teresa King Kinney; CEO of the Miami Association of Realtors:
As a response to Miami’s rapid growth, the City’s Planning Department commissioned DPZ to completely overhaul the zoning code and create a plan for the next century of development.
Miami 21 results of a collaborative effort that represents a significant milestone for the City. Miami 21 represents the “Miami of the 21st Century” and entails a holistic approach to land use and urban planning. It will provide a clear vision for the City that will be supported by specific guidelines and regulations so that future generations will reap the benefits of well-balanced neighborhoods and rich quality of life.
The cornerstone of the Miami 21 project is the transformation of Miami’s existing land-use-based zoning code into a form-based code. Upon completion, the new code will offer a more efficient, predictable, and comprehensive approach to urban development.