It’s that time of the year when we look ahead into the future and make big predictions on the property market. So, do you have a property for sale in Florida, USA?
In this article we look ahead into 2017 and tell you about the top real estate trends to expect in Florida. You will probably find this information useful if you’re planning to sell your property in Florida, USA online in 2017.
Trend #1: Interest rates will rise in 2017.
President-Elect Donald Trump is in favour of higher interest rates and it does seem like the Fed agrees with him. Earlier this week, the Federal Reserve hiked interest rates in the USA by 25 basis points.
We expect the Fed to hike interest rates over the next 12 months on a consistent basis, almost every quarter. This would push up the cost of mortgage loans. Logically that should discourage buyers, but we don’t think that would happen. Interest rates are so low right now that the hikes are not expected to have any effect on the property market.
Trend #2: Home prices will be higher.
We expect home prices to increase gradually, and the market will certainly rise to the same level as in 2007. So the subprime mortgage crisis of 2007-2008 will be finally put behind us. There’s a lot of construction activity happening in the background. So expect a lot of demand for homes in Florida in 2017, with the supply just about keeping up with the demand. Home prices are expected to rise by a healthy rate of 5% in 2017.
Trend #3: Millennials will be big buyers
Millennials, you might say, have finally come of age. We expect more of them to be involved in the housing market in Florida. This is a great tome to buy your first home as the mortgage rates are still very low. There are plenty of homes and apartments available that are suitable for young, first-time homebuyers. The job market has improved by a great extent over the last 12 months or so. Indeed, Millennials in Florida were responsible for home sales worth $2 billion in 2016. We expect this trend to continue in 2017 as well.
Trend #4: The Donald Trump effect.
Donald Trump is going to be the new President of the United States, and Florida is one of the many states that preferred Trump to Hillary Clinton. Indeed, Florida’s preference for Trump was one of the turning points of the election. We expect Trump to reward Floridians in a big way for support. Expect a lot of investments in Florida. The local economy should receive a big boost. This is certainly good news for the real estate market here.
Trend #5: A move to the suburbs.
There was a brief trend for a while when home buyers preferred to purchase apartments within city limits, at a walkable distance from their offices. Now, with the job market recovering substantially, home buyers are once again looking to buy homes in the suburbs.