LSL is a full service accounting firm that can provide accounting and tax services for your real estate projects, financial statement audits, reviews and compilations. For over 45 years, we have been working with real estate investors, developers and professionals in the Southern California area.
Here are the 5 Trends we see for in Real Estate for 2015:
- Real Estate growth to follow job markets– Population growth has followed job development in cities such as San Francisco, Austin, Houston and Seattle which increases real estate opportunities. This employment growth is mostly in the technology, energy and banking industries.
- Multifamily is popular- Multifamily transactions are exceeding the office deals and REITs. There are several new housing communities in Irvine and throughout Orange County. The millennials, who have been renting longer, are expected to start buying more homes in 2015, and also there should be baby boomer homebuyers who are planning to downsize.
- Increase appetite for risk– Investor activity is shrinking. Investors like to go where they can buy low and sell high. Price growth is declining and the home value growth is expected to slow to 3% per year from the 6%. Investors are willing to accept higher risk to possibly gain higher returns are entering markets such as Denver, Colorado, Austin, Texas and Charlotte, North Carolina.
- Rise in Retail- Although retail has been affected by the recession and increase in e-commerce, retail sales are expected to increase overall in 2015. The retail market is split between high-end retail destinations and discounters as well as an increase in local grocery strip centers. As home values continue to increase, retail sales are expected to increase by around 6% per year.
- Interest rates to stay low. This is partially due to the geopolitical unrest, which will keep inflation in check and also keep oil prices low. Although interest rates are expected to remain low, they could increase some, possibly up to 5%.
For more information about trends in real estate or if you have questions about real estate accounting and tax services please call LSL CPAs & Business Advisors at 714.672.0022.
