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Economists have been assuming that that Florida’s real estate
market, one of the nation’s red-hot housing market, is a bubble that is
about to burst.
However, not everyone believes this will happen. Local Florida real
estate organizations are aware of their market’s success and are
positive that it will last longer than expected.
The slower economic growth, high interest rates and housing prices
that have increased quickly will have a definite cooling effect on
Florida real estate sales and prices in 2006.
Then again, as Florida maintains its rank as one of the top five
fastest-growing state in the country and with the Orlando
metropolitan’s economy leading the nation, there are numerous of
analysts who believe that Central Florida’s real estate market has many
years of intense growth to come.
According to Mark Vitner, a senior economist, Florida has one of the
best economies in the country. All of Florida’s industry and
metropolitan areas have shown very healthy job growths. In fact, the
September 3.5 percent unemployment rate is actually the lowest recorded
number in the state of Florida.
Regardless of increasing interest rates and concerns that sellers raise
prices rapidly, the real estate market of Florida certainly remains a
market for sellers. One major proof of this is particularly because a
thousand new residents move to the “Sunshine State” each day. In
addition, it is expected that approximately 440,000 more residents will
be relocating to Florida next year.
With this large number of potential homebuyers, who will have to
compete with constant foreign investors, vacation real estate market
and nationwide residents desiring to purchase Florida real estate for
future retirement, it is evident that the market will remain
Central Florida’s real estate market managed to survive during the past
5 years despite the Sept. 11 terrorist attacks and other disruptive
national calamities. The low interest rates in real estate have helped
to recover Orlando metropolitan’s economy. Florida real estate prices
soared and housing supply snatched up.
In addition, South Lake County, Haines City, Clermont and Poinciana,
Orlando’s Four Corners, experienced a mix of single-family homes and
condominium booms with many new properties available online. Central
Florida’s real estate development is still going on all over the area.
Many analysts have stated that there is no reason for concerns
regarding Florida’s real estate market will be experiencing bubbles
anytime soon. The country’s economy will be expanding in 2006 as the
government will be investing in the post-Hurricane Katrina
reconstruction. This rebuilding will help boost the real estate growth
for next year.
In addition, the baby boomers are now in the peak of their real
estate-buying years. Since Florida remains one of the best places to
live in during retirement, the state has no problems with its real
estate market.
A slowdown of the market may be expected due to new regulations of
lending with interest-only programs. This will restrain some foreign
home buying. In 2006, real estate developers are expecting a 5 percent
reduction in construction costs and sales. Due to this, economists
believe that next year is probably the peak for buying Florida real
estate.
Florida’s home ownership rate is currently at 77 percent and is expected to remain for the rest of 2006.
During the last quarter of 2005, the Florida condominium craze has
provided sky-high prices to soar. The Florida real estate, in regards
to condominium sales, is at the top of the condominium -craze list.
The rental markets of Florida are expected to grow quickly as next
year starts. Moreover, numerous development prospects for construction
of retirement homes, planned communities, resort hotels and urban-mixed
properties are set for 2006.
Tracy
Aquablue Realty Miami Real Estate |
