With the ups and downs of last year behind us, 2017 is poised for a promising start. This year goes to the domestic buyer in our South Florida real estate market due to a decline in foreign investment according to Paul Owers of the Sun-Sentinel.

Here is a rundown of our predictions for the 2017 real estate market:

Single Family homes up to $400k will continue to increase due to high demand, a shortage of inventory and looming rate increases on the horizon. Millennial buyers are coming into their buying years which will boost demand for the housing market. With unemployment at record lows and pent up demand due to the housing crisis, we are seeing properties fly off the shelves. Buyers and sellers alike can expect prices to continue to increase over the next 12 months.

Now the condo market, on the other hand, is not as desirable. Brickell and Downtown condos were never built for local residents. They were developed mainly for foreigners as a safety vehicle to place capital. Unfortunately, that market has cooled off due to our dollar increasing in value in comparison to other currencies. We predict adding rising rates into the mix will further increase the value of our dollar and continue to create downward pressure on Brickell condos. Luckily, most of these units were cash purchases so we will never see the decline of the Great Depression even with an oversupply of inventory. For the condo market, expect prices to continue declining over the next 12 months.