A recent Top 10 list was published by the Counselors of Real Estate group in Florida that offers information about projected changes in the market that might be expected this year. Both commercial and residential real estate face issues that could have an impact on sales. Florida residents who plan on buying or selling real estate in the foreseeable future might be interested in the recent publication.
There are apparently several significant issues involved in the real estate changes expected to occur. Lifestyle shifts of those in the 50 to 69 age group, as well as those who are between 18 and 34 years of age are projected to have a significant impact on real estate. Increased foreign investment is also cited as having a potential effect on real estate purchases and sales. A spokesman for the Counselors of Real Estate stated that rising economic uncertainty and an expanded wealth gap among the population could greatly disrupt real estate markets in the United States as well.
Though still at an historic low, interest rates are expected to rise in the near future. Opinions as to whether this will bring about a decrease or increase in real estate sales varies. Some believe that increased rates will dampen the sales market. Others say that it could inspire new sales, with buyers wanting to make purchases before interest rates skyrocket.
Another topic of interest that will possibly affect commercial and residential real estate in the coming year is that of “urbanization”. Studies suggest that many people are relocating to city environments so that they can work, live and recreate in the same area. Thus, this shift could pose an obstacle to home sales in the suburbs. Florida residents and/or investors who are affected by these changes and who wish to seek legal advice as they prepare for the sale or purchase of real estate in the area can consult with a real estate lawyer for guidance.
Source: ocregister.com, “Top 10 real estate issues for the year ahead“, Jeff Collins, June 24, 2015