Wednesday, May 2, 2012

6 Possible Reasons Why the Miami Real Estate Market May Rise

You may not be aware, you may not have been paying close attention but there's some great news in the air. Great news is always a good thing, actually it's a great thing when you're talking real estate in Florida and here are 6 top great reasons on why the Miami Real estate market may go up and stay up.

1) Unemployment Rate Down, Jobs up
Let's start out with the Florida unemployment news. As of March 2012 the unemployment rate is at 9%, obviously it's not at an amazing 4%, but it has gone down 4 quarters in a row. Last April the Florida unemployment rate was at 10.6% and only 9,229,100 people were working in the state of Florida according to the U.S. Bureau of Labor Statistics. This April with the unemployment rate being at 9%, 9,290,000 people are reported to be working in the State of Florida, which is an increase of right around 60,000 jobs in the state of Florida.
This isn't great, but it's a good start especially for real estate. If people can't find a job chances are they're not going to look for real estate. Job growth will always have a great impact on the health of the real estate economy and this is a good start.

2) Florida Real estate brokers are showing real sales
The Miami Association of Realtors reported a 13% sales increase for single family homes and Miami condos for sale in Miami-Dade and Broward Counties for the month of March 2012 from February. With a surge that high that quick for an area it's a great sign that the real estate market is getting healthier and stronger.

3) Florida Foreclosures are down
California and Florida have been the leaders with the most foreclosures in the country and Miami unfortunately has more foreclosures than any other city in Florida. That being said you can consider Miami to have more foreclosures than any other city in the United States besides Las Vegas. Foreclosures are a sign of an unhealthy real estate market. Many factors can lead to a foreclosure but the good news is that foreclosures are on the down, in the state of Florida in October 2011, just a few months ago, there were 33,073 foreclosed homes on the market for sale. As of March 2012 there are now 26,758 foreclosed homes on the market. This is a great sign that the market is getting healthier.

4) Interest Rates are still low
For the month of April 2012 the interest rate for a 30 year fixed rate is around 3.88%, this has been helping real estate sells all across the country and is a great reason for a consumer to buy real estate now, and is a another reason on why the real estate market is getting healthier.

5) The Stock Market is showing great signs
There isn't much data out there to really prove that the stock market has a big impact on the real estate market, however it has a great impact on the economic optimistic health of the country, which has its effect on the buyer. For Florida it actually has an impact on the 401k's of the retirees and that has an impact on home sells.
The Nasdaq and the Dow Jones both reported their strongest quarter (March 2012) in 14 years. If it was just an average quarter it wouldn't be worth acknowledging, but a strong quarter shows that the economic health of the country is improving. Expect this to increase the optimism in the eyes of the buyers.

6) The Weather is getting better released their 2012 Hurricane predictions and it looks really great for Florida. They predict 4 minor small hurricanes and two possibly larger sized hurricanes for 2012. Hurricanes may increase jobs and some even speculate that it increases real estate sells. There are bad signs though that come from hurricanes and the biggest is home insurance prices tend to hike up in hurricane areas. The second bad sign is vacationers tend to go to other parts of the world instead of hurricane areas when August rolls around. This shows the weather actually does have its toll on the Florida real estate market but a smooth season may actually increase real estate sells.
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