The ups and downs of the Miami real estate market seemed to have leveled off and are on a slow and steady climb upward. So what’s ahead? Will the shadow inventory of homes still in foreclosurecause a repeat of the downward spiral or will casinos get the greenlight and foreign investors keep the market buoyed?
Prediction: Prices will remain low. Although prices have increased the past year, they’ve yet to close in on the pre-bust highs.
Prediction: Foreclosures will slow down. With the crackdown on “robo-signing,” and paperwork now closely scrutinized and more than 100,000 pending cases, some of which have been in litigation for years, foreclosures rate will level off. But the 200,000+ homes that make up the shadow inventory could depress the market again as they become available for sale.
Prediction: The Rental Market Will Spawn Sales. As more families are forced to rent and the rental market gets a boost, more investors will gobble up existing homes on the market in order to flip them to rental properties. Last year saw a 95 percent rise in the rental market.