Tech Industry Could Boost Miami’s Housing Market

When most people think of Miami, the first thing that comes to mind isn’t usually the city’s prominence in the tech industry. However, Miami-Dade, Broward and Palm Beach counties are home to 8,167 technology businesses, the 12th highest in the country according to Census data by Computing Technology Industry Association. With growth of the industry on the horizon, it could most certainly impact our local housing market.

Amazon Still Eyeing Miami

Along with other cities, Miami is still in the running as a destination for Amazon’s second headquarters. The company expects to invest over $5 billion in construction and create as many as 50,000 high-paying jobs.

Housing and Real Estate Investments Could Benefit

For many reasons, there is growing interest in Miami from the tech world, which could result in a boost to the housing market. The cost of living here is less than in other major metropolitan cities like New York or San Francisco. Secondly, entrepreneurs and investors may look to take advantage of the state’s tax laws by purchasing property and establishing business-friendly Florida as their personal “home base.”

For professional advice on all aspects of buying or selling real estate, please contact me at aross@miamirealestate.com or (305) 206-4003 or come see me at the Compass office located at 2550 South Bayshore Drive, in Coconut Grove.

Homebuyers are Undeterred by Rising Interest Rates

Despite the recent increase in interest rates and the new tax hikes set in place at the end of 2017, home sales were higher than expected early this year, according to the National Association of Realtors. In the luxury home market sales were up 19 percent from a year ago.

Few Concerns from Buyers

With the prediction of interest rates increasing later this year, many buyers are interested in locking in rates now, which is causing a rise in demand for luxury housing. With a better job market and the possibility of mortgage rates increasing in the near future, buyers are in a prime position to make a purchase.

 Luxury Home Sales Increasing

Newly released data from the Miami Association of Realtors shows that in March the Miami luxury single-family home market posted gains of 10.3 percent year-over-year. This increase in sales and urgency from buyers means now is an opportune time to list a luxury property.

For professional advice on all aspects of buying or selling real estate, please contact me at aross@miamirealestate.com or (305) 206-4003 or come see me at the Compass office located at 2550 South Bayshore Drive, in Coconut Grove.

 

Now is the Time to Invest in South Florida Real Estate for the Best Mortgage Rates of 2018

With the spring real estate season in full swing, many potential homebuyers are anxiously anticipating what the market may do with regards to mortgage rates and are weighing their options for the right time to buy. Though interest rates can fluctuate regularly, there are some signs pointing to the fact that we are in the prime time to buy for 2018.

Interest Rates on The Rise

The Federal Reserve recently raised short-term interest rates, which is an indicator that the economy is strong. Though on a slight incline, interest rates are still fairly low and manageable when it comes to investing in real estate. If inflation continues to increase, we may see two or three rate hikes from the Federal Reserve throughout the remainder of the year, which will leave some investors with a slightly higher investment cost the longer they wait to buy.

Mortgage Rates Have Remained Steady but Rising Slightly

After rising during the first part of the year, mortgage rates have seemingly settled in during late March and April. It appears that the long-term lending markets have been unfazed by some of the tensions and headlines in the news, which could cause some volatility in the market.

As of last week, the U.S. mortgage rates were mixed with a slight upward trajectory from the steady rates of March and early April. The annual rate of baseline inflation accelerated to 2.1 percent in March, and therefore the Federal Reserve Chair may consider taking a more aggressive path on policy to protect the economy with a rise in rates as the year progresses.

Tensions Can Cause Rate Increases

With a recent attack on Syria, we did see a slight uptick in rates. Usually, international events that can affect the world markets will also have an effect on the markets at home. Because the U.S./China relations have improved, there is not an immediate danger of a trade war in the East, which plays into the favor of rates staying on course with where they are, at least for the short term.

Buy Now for Best Rates

Experts note that mortgage rates are still low, which significantly helps to support homebuyer affordability as the spring buying season ramps up. Now is the time to consider a big purchase such as a luxury home, when you may be using lending as a way to control costs. With projected increases throughout the rest of 2018, take advantage of spring selling season and low rates with your next real estate transaction.

For professional advice on all aspects of buying or selling real estate, please contact Audrey Ross at aross@miamirealestate.com or (305) 206-4003 or visit her at the Compass office located at 2550 South Bayshore Drive, in Coconut Grove.

References:

Bell, C. (2018, April 16). Mortgage rates increase for Monday. Retrieved April 17, 2018, from https://www.bankrate.com/mortgages/rates/mortgage-rates-for-monday-april-16/

Orton, K. (2018, April 12). Mortgage rates stay the course despite trade tensions and global concerns. Retrieved April 17, 2018, from https://www.washingtonpost.com/news/where-we-live/wp/2018/04/12/mortgage-rates-stay-the-course-despite-trade-tensions-and-global-concerns/?utm_term=.3b34921a625d

Freddie Mac: Mortgage rates could soon head higher. (n.d.). Retrieved April 17, 2018, from https://www.housingwire.com/articles/43091-freddie-mac-mortgage-rates-could-soon-head-higher

(n.d.). Retrieved April 17, 2018, from https://www.fxempire.com/news/article/u-s-mortgage-rates-mixed-look-ready-rise-493084