Miami is about to see some amazing changes when it comes to the real estate market. Because the economy is poised for years of growth, the housing and development markets are expected to boom. While the prediction is that there will be five straight years of growth, most investors are playing it year-by-year. Whether you’re buying commercial property or residential, there are five big real estate trends ahead for Miami to keep an eye on.
Multi-Family Will be in High Demand
Multi-family residences—townhomes, apartments, condominiums, duplexes, etc.—will be in high demand for 2015. According to the CBRE, it is expected that almost 1,000 families will be headed to Florida for 2015. Additionally, with the ownership of single-family homes hitting a dramatic low, real estate experts project that multi-family homes will be picking up the slack.
Unfortunately, there is limited land supply in Florida to accommodate more multi-family buildings, which means rental rates are likely to jump up along with the demand, which is great for rental property owners, but not great for potential renters.
Distressed Homes and Sales Will Decline
Florida was hit hard with foreclosures. Neighborhoods were littered with foreclosed properties, distressed homes and values in the area suffered due to the neglect of those properties. The inventory of foreclosed properties has been steadily declining and it was estimated to be down by 30 percent at the end of 2014; which means 2015 should see even less foreclosed homes plaguing neighborhoods in the state.
Tight Credit Standards Stand
No one wants another recession. So, banks will not loosen their credit standards or mortgage availability. Even with interest rates remarkably low, lenders are still unlikely to approve most applicants unless they have great credit and the right debt-to-income ratio. If there is any risk, lenders are unlikely to approve the application, even with an excellent down payment.
Read more about the real estate closing process, including how you can be denied for credit issues after the home buying process begins.
Use Title Lab as Your Real Estate Escrow and Closing Specialist
Title Lab is your local escrow and closing specialist. We can help you with your real estate title search in Miami, real estate closing and even your escrow. Contact us today at 305-440-4150 for more information.