The U.S. real estate market has taken investors on an interesting roller coaster ride these past couple of decades. In the booming economy of the early 2000’s, property values skyrocketed to double and triple times their original worth, followed by the free fall of property values in the late 2000’s, post-recession. However, specialists hold great optimism for 2015’s real estate market. Continue reading to see what advice real estate specialists have to give on whether it is time to buy new property, hold on to your property or flip it to cash in on the earnings.
Chief economist for the National Association of Realtors (NAR), Lawrence Yun, predicted in the Confidence Index that sales for existing home will bounce back for the next two years, and the national median existing-home price will rise at 4 percent both this and next year. Chief economist for the National Association of Home Builders, David Crowe, projected that new construction for multi-family housing would increase 15 percent from October of 2014 to the end of the year and remain stable throughout 2015.
National housing and economic indicators point to good news for real estate investors. According to RealtyTrac’s data, VP Daren Blomquist, believes 2015 will be a better year for buy-and-hold investors that for flippers. Their data shows the number of properties being flipped has dramatically declined from its most recent peak in 2012. Since home value appreciation has slowed, flippers have become less active as well.
South Florida Economy
Just like the national economy, South Florida’s economy is in full speed ahead with the recession and real estate collapse left in the dust behind. Founder and principal of the Washington Economics Group in Coral Gables, J. Antonio Villamil, predicted in the Miami Herald that South Florida will do quite well in 2015. He says, “We have a good business climate, low interest rates and low oil prices, so we’re coming into the new calendar year with a bang. …Construction, retail and anything to do with the visitor industry should do well.”
South Florida Investors
The construction industry shows great promise in 2015, as Miami construction company, Coastal Construction, expects a $50 million growth in revenue this year. The construction industry in South Florida can be used as an indicator of where real estate investments are going. Similar to the national forecast, this year will be a better year for buy-and-hold investors that for flippers as well as new construction geared toward visitors in South Florida.