The opportunity to make a serious profit by buying a house in South Florida may be going away soon, but that doesn’t mean that South Florida housing isn’t in a healthy place, according to a new report from the Sun-Sentinel.
In fact, South Florida home values are expected to soften in 2015, but only to a more traditionally healthy level of 3-4% per year.
From the Sun-Sentinel report:
Over the past few months, median prices have sputtered in Palm Beach and Broward counties, but those declines will be short-lived, said Ken Johnson, a real estate economist at Florida Atlantic University.
"We're in the midst of a slow recovery," Johnson said. Potential buyers needn't worry that homes will become over-valued and prices will climb out of reach if they fail to buy right away, he said. "Housing will still be a good deal six months from now, a year from now."
The Sun-Sentinel report has other predictions for 2015, including an increase in mortgage lending driven by the private market, albeit with higher fees and interest rates, and a slowdown in foreign buyer demand.
South Florida has been an especially big draw, but foreign investors will likely look in other directions in 2015, including real estate in Southwest Florida and financial investments like corporate bonds or debt refinancing that could yield higher profits, analysts say.
Click below to see more predictions for South Florida housing in 2015.