Florida real estate experts and investors were pessimistic for a second consecutive quarter, despite encouraging signs in the rise of occupancy rates and prices in the rental apartment market, according to a new University of Florida (UF) survey.
The survey points to the falling market for single-family houses, condominiums and most types of land as the main reason for the third-quarter malaise.
Uncertainty over unsettling global economic news added to the decline. Respondents anticipate a sluggish recovery for the real estate market in the coming years due to a large inventory of home foreclosures and high employment. Since January, 70,000 new jobs have been created in Florida, but they were offset by 63,000 lost positions, keeping the unemployment rate at 10.6 percent since April.
The survey points to the falling market for single-family houses, condominiums and most types of land as the main reason for the third-quarter malaise.
Uncertainty over unsettling global economic news added to the decline. Respondents anticipate a sluggish recovery for the real estate market in the coming years due to a large inventory of home foreclosures and high employment. Since January, 70,000 new jobs have been created in Florida, but they were offset by 63,000 lost positions, keeping the unemployment rate at 10.6 percent since April.
Survey takers also believe that a weak economy continues to discourage the private sector from adding new hires. Concern over stock market turmoil, ongoing gridlock in Washington and the upcoming presidential election added to the overall pessimistic outlook.
With widespread home foreclosures forcing displaced homeowners to rent apartments, the rental apartment market, which, according to the survey, is real estate’s “best performing asset.”In addition, many young job seekers who want flexibility are seeking rental units. That trend helps to drive up occupancy, allowing owners to charge more rent.
The survey did identify bright spots in Florida’s economy. Condo projects are under way in Miami, which is also enjoying an influx of investment from South America. Respondents are also somewhat cheered by prospects for Florida ports as the Panama Canal expansion project continues. Read more here.
Source: 2011 Florida Realtors®
