Navarre Beach Real Estate 2016 Mid-year Predictions

When it comes to the Navarre Beach real estate market, virtually everything is on track, an observation that also applies to other areas in Florida, such as Pace and Cantonment. Industry insiders mostly agree that the increasing rental rates coupled with moderate growth in home prices and rise in mortgage rates should encourage more people to purchase residential property. But inventory still remains an issue although real estate developers and agents are looking for more effective ways to boost the numbers.

 

Millennial Market

 

2015 was a relatively strong year for Florida, as was the case for Cantonment real estate market segment. The high home sales was due to several factors including increased trust in the strength of the economy, decreased home prices with many being offered with substantial discounts, and increased employment. 

 

For 2016, the demand for for-sale residential property will still grow with older millennial people (i.e., the 25 to 34 age cohort) dominating the segment. Emphasis must be made that older millennial people have the resources and aspirations for homeownership, a fact that strong markets like the Pace Florida real estate segment are proof of. Even real estate agents agree that millennial people may well claim one-third of the total home sales in 2016, which represents approximately 2 million property purchases. 

 

But it’s not just the millennial people that continue to play major roles in the buy and sell of homes in the state and country. Many of the non-millennial people will also be instrumental increasing the number of inventory for the sell side, thus, meeting the deficiency in the buy side. 

 

Inventory for the Buy and Sell Equation

 

On one hand, the Generation X people are in their prime income-earning years, which means that their need for relocations to better neighborhoods has grown.  On the other hand, the baby boomers are either approaching retirement or already in retirement, which will encourage them to downsize from their current homes to reduce cost of living expenses, among other reasons.

 

Think about it: The baby boomers will provide the inventory of desirable property that the Generation X and millennial people will want for themselves.  Add in the new property being constructed by real estate companies and the future is looking bright for everybody in the market. 

 

With single-family construction on the rise, the supply chain is also expected to improve. Aspiring homeowners will also be more encouraged to buy homes, thanks to the more affordable price points.

 

The question: Are you ready to ride the wave of an improved residential property market in Florida? You should consider it especially as becoming a homeowner, not just a renter, will be for your benefit in the long run! 

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