Miami Real estate investors should look forward to good news. According to the National Association of Home Builders latest multifamily market index, the second quarter of year 2010 has reported increased demand for rental properties. The figures are higher than the first quarter. According to a chief economist from the association, the Miami rental properties are more in demand as the labor market is improving, pent-up household formations are remerging and additional units supply decreases. It is being expected that the new units will not be supplied in time to be able to meet the increasing demands. Some markets too will have to witness the shortage.
It is known that the amount spent by the consumers is increasing but it is offering a humble gain. According to the reports from the Commerce Department, spending has increased by 0.45% in the month of July. The spending however remained stable and flat during the month of June. The annual growth rate for consumer spending is being stated at 2% in the third quarter of 2010 by the Wall Street Journal. The positive factor is that rate is increasing, even though at a slow pace.
15 million across the country are facing unemployment. The jobless claims saw a decline in the first week of September. The number went down by 27,000 and is being termed as the lowest since a long period of time. Experts say that sustainable growth is round the corner when then the unemployment rate is around 9%.
If you live in a place that has been hit hard by the foreclosures, you need to know that Obama Administration, along with HUD has announced an award of $1 billion extra in the form of funds to all states. The funds will also be given to the local communities and many counties so that the crisis side effects can be reversed. The foreclosed properties affect their home values and neighborhood and the grants are being given with the purpose of reversing the effect. The homebuyers with moderate or low income can then use the grants to make the down payment and give the closing cost for Miami foreclosures.
There are a lot of markets that have abundance of foreclosures. In the month of August, the number of foreclosures rose by 4%.
