The international real estate markets are currently in a stable condition with steady inflows of funds and a slow increase in investment volume compared to the 8% rise in 2015. Global commercial rents and investment sales volumes will too experience a fair growth due to moderate economic growth and low interest rates.
What’s the picture of the U.S. real estate market? Is it set to experience a boom in 2017? Well, the U.S. real estate markets are showing both good and bad signs. Mortgage lending standards have been simplified a bit but qualified buyers are still having tough time in getting a mortgage. Meanwhile, there’s been no improvement in the mortgage originations for the last two years and housing prices in many areas are much higher than what the fundamentals of the U.S. economy can justify.
Let’s take a look how the U.S. real estate industry is going to fare in 2016:

The Good Signs

Second-Tier Cities are Becoming Real Players.

Cities such as Austin, Portland, San Antonio, Nashville, and Raleigh-Durham are expected to take center stage this year. They are going to fare better than high-profile cities like New York and San Francisco for being well connected to the main city hubs and offering affordable and convenient investment opportunities and low costs of living.

Suburban Areas to Play Significant Roles.

More and more people are showing tendencies to move to those suburban areas that are well connected to big urban centers, have good transportation options, and replicate more Main Street living. So, suburban regions like Pittsburgh, Milwaukee, and Hartford will see continuous growth. Especially, the Milwaukee city has experienced a decrease in vacancy and has utilized a significantly huge size of previously unoccupied land since the beginning of the year.

Luxury Real Estate in New Destinations.

Broward County, Florida, has been quickly turning into a hotspot for luxury real estate developments. With bright, warm climate and beautiful beaches, Broward is slowly leaving Miami behind in terms of number and prices of new luxury structures.

The Bad Signs

San Francisco Market Takes a Blow.

The California city has been on the good side of the spectrum for the last few years. However, the city’s real estate market has taken a blow and experienced a decline due to the rapidly increasing home prices. The home prices have already hit historic highs in 2016.

Miami’s Market Loses Pace.

The rise of Broward County makes Miami’s market lose its pace and a bit of its steam. The price has played a big role here as investors have to pay approximately $2,400 for per square foot in Miami while the cost in only $929 in Broward.

Real Estate Condition in Puerto Peñasco, Mexico

During such a volatile condition of the U.S. market, Puerto Peñasco could be a good choice for the American buyers looking for a second home. Due to the depressed condition of the property market and the strength of U.S. dollar against the Mexican peso, the real estate in Puerto Peñasco offers great opportunity to any serious buyer and investor.
Even in the last quarter of 2015, you could own a two-bedroom condo on the Sandy Beach (the main beach of Puerto Penasco) for as little as $109,000 and single family homes with water views in a planned community start at $175,000, which is a steal of a deal if you compare to many real estate markets in the U.S.