University of Central Florida Forecast Predicts Slow but Steady Growth

Florida’s housing market: a cautious convalescence continues

Palm Coast, FL – July 30, 2010 – Florida is winning the slow race towards economic recovery according to the July Florida Economic Forecast published by the Institute for Economic Competiveness, College of Business Administration, University of Central Florida.
Within Florida’s housing market, a cautious convalescence continues.
  • Housing starts finally hit bottom in 2009. Starts will increase slightly in 2010 and accelerate in 2011 and 2012.
  • Mortgage rates remain at historic lows, but homeowners finding themselves upside-down with their present mortgage will find it nearly impossible to refinance.
  • In addition to tight credit conditions, the housing market recovery faces high and persistent unemployment, weak job growth, and slow population growth.
  • The housing market for existing homes continues to rebound as the steep drop in prices has stimulated sales. But median selling prices are and will remain stubbornly low until the underlying conditions (unemployment, jobs, population, and credit) strengthen.
The forecast says that the BP oil spill put a cap on Florida’s tourism. It does not pick up on a trend already apparent in our area. Tourism has increased as visitors who still love Florida are simply taking their vacations on the east coast of the state. A percentage of them are likely to make the switch permanent.
For the full report:   Click Here  
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