Real estate market is one of the places where investors see some security for their money. Amid a weak global economy and falling oil prices that affected many countries, investors want to safeguard their investment by divesting into the property market. Manulife could take advantage of this.
Across the nation, home prices had increased on a year to year basis by 6.7 percent. This figure included distressed sales compared with figures from March 2015. On a month to month basis, home prices rose by 2.1 percent between February and March 2016.
Despite the ongoing global economic turmoil and oil prices hullabaloo, things are looking good for the commercial real estate market in the United States. A recent report says the country can expect an increase in foreign investments with commercial property prices and transactions slowing down.
The research was conducted by Axiometrics and it found that the average rent for off campus school housing, which many new graduates would opt in their first months of finding a job, cost about $533 near the University of Florida campus. In nearby Florida State University, the cost of rent was at $536. In comparison, the average room rental for March in Miami was at $1,000. In Orlando, one room sets back an individual at $651 and in the Tampa- St. Petersburg area, the cost is at $657.
The study differentiated homes in the top 10 percent of ZIP codes in each metropolitan city is deemed as the 'luxury market'. Comparatively, the bottom 10 percent of ZIP Codes in the same metropolitan city is deemed as the 'entry-level-market."
The fourth quarter CRE loss rates, which is the annualized charges as a percentage of average loan balances, is now being reviewed by regulators recently. This is part of the oversight on financial institutions' activities that are related to commercial real estate loans. The oversight was instituted to prevent the market crash recently experienced by the real estate market.