Investors looking at Miami real estate are seeing a positive change in the American housing market. The signs of a potential upswing are prevalent in home pricing, market availability and mortgage/debt management. With the price of real estate continuing to rise, now may be the time to invest. There is an influx of foreign capital, as well as the opportunity to sell to first time buyers looking to capitalize on record low mortgage rates. What does this mean for the wealthy investor? There is a healthy seller’s market on the horizon.
Polls comparing nationwide home prices to median household incomes show that we are currently below historic averages. Unlike the last ten years, families are now in a position to invest. All the signs are there that the market in the US has bottomed. With the worst of the recession behind us, there is nowhere for the market to go but up. And with a resurgence of buyers, comes a new echelon of interest in top shelf estates as well.
30-year mortgage rates are hovering at 3.6%, and low housing prices, in most metropolitan regions have crossed the ‘it’s cheaper to own than rent’ threshold. This helps set the stage for a potential surge of new buyers. For investors looking to buy and divide townhouses, this continues to be a good sign.
But still, home ownership is down. And so is new home construction. The average real estate investor has being sitting on his capital, waiting for the signs of a bottomed market. But they are everywhere and have been for a while.
One of the most positive trends is the decrease in default mortgages. A more mature homebuyer is now entering the marketplace. Those people who shouldn’t have owned homes in the first place, now don’t and the people who can afford to own home, are now looking to invest.
There are areas in the country where the cost of real estate has already started to rise. Miami has already show that it is the in a major upswing.
Miami real estate has begun to heat up faster than LeBron in the fourth quarter. In fact, Miami real estate has already turned the corner and it happened very quickly (in the last year), but Miami has much more room to improve seeing that property prices had declined by 40% to 50% from peak. Don’t wait for more signs that the general housing market has bottomed before getting in the game, otherwise, you might be priced out of the Miami market.