Market Predictions for 2016
There have been some lingering questions regarding where the market will go this year. In a recent survey, insiders such as developers, lenders, Realtors, and investors suggest that 2016 will, in fact, be a strong one for the market despite the rise in prices and a slower sales pace. This directly negates the question many had wondered whether the market was set for another potential bubble burst.
Just over forty percent of the survey respondents believe that 2016 will be “somewhat better” than last year. Another 37 percent believe there will be no significant change and less than fifteen percent suggest that 2016 will be “somewhat worse”.
What’s causing the slower sales growth? It may have a lot to do with the economic struggles being faced by Europe and Latin America. Foreign buyers account for a large portion of all buying and investing activity since the recession, particularly condominiums. On the other hand, single family homes are still seeing record sales due to the low inventory.
An interesting change noted in the survey are the plans for developers to move beyond just condominium developments into retail, hotel, and hospitality projects that could signal a change in diversity during 2016.
This update is brought to you by the Kawas Team, specializing in Miami Beach luxury homes. The Kawas Team can help you find the right property. If you would like additional information on pre-construction sales, call 305.608.6681 to speak with an expert. Visit our website for information on the many new projects throughout the many Miami luxury neighborhoods and beyond.
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