43 Urban Village Live + Work New Construction written by: Frank Vigliotti, Realtor®, Global Sales…
Ft Lauderdale Real Estate | Wilton Manors Realtor | Henri Frank Group
What do we believe? Just think of the enormous amount of information we take in within one day. Print advertising, billboards, blogs, newspapers, radio talk shows, television talk shows and the list goes on. Each person we listen to, each article we read, each editorial we hear, each person has an opinion. And it seems, when it comes to the topic real estate, we cannot help but think Florida. Not only because we are in Florida, but the great Sunshine State has always been a hub for this ever popular and important investment.
South Florida seems to almost always rise to the discussion of real estate and for a number of reasons. First, the unique flavor it brings to the United States landscape of real estate. Second, the number of people from across the globe who is interested in buying a piece of this tropical oasis. I don’t want to get off track, we know all of this about South Florida. But I want to get to the meat of why I think this information I am about to provide you can be controversial and we need to have a heightened awareness.
“Florida economists project that the economic issues in European countries will have an effect on the housing market as more foreign buyers decide not to relocate as their money will not get them as much as it did in the past,” according to the Florida Realtor Association. As important as that may seem to some, read it again. Abstract, well yes, the words are true, the thought process true, but will we adjust our way of doing business on such? I think not.
The economic conditions in Europe are expected to hinder the growth of Florida’s housing market. The European Union may be facing some major structural changes to help rectify the financial uncertainty of Greece by monitoring the moves of other countries with drowning economies.
Representatives from Florida’s government and economists associated with the Florida Legislature gathered to modify some of the projections made earlier in the year regarding unemployment and housing construction. The result of the meeting was a small change to a projection made in December of 2011. Florida is not expected to experience another economic collapse but the recovery from current conditions may take quite some time. And as happy as I am to hear that our Legislatures here in Florida are working hard gathering information and creating projections, I want to warn those who read this information, hear this information and in some cases make a decision on their real estate investment based on these projections.
Home re-sales and average listing prices aren’t expected to rise dramatically and more foreclosure activity is projected to lower home prices. New residential construction in Florida has continued to increase as of late and has helped to create about 25,000 employment positions within the last year.
The previously thriving vacation industry in Florida may also be affected the troubles of the European economy. Many European vacationers may call of their trips to Florida based on the unstable exchange rates amongst other issues. If this becomes an issue, tourists can expect to see higher rates to make up for the loss of visitors due to the increased costs of vacation in Florida.
The tourism industry in Florida is expected to decrease by as much as 2% and is not expected to recover until late 2014 or 2015. Representatives from the Governor’s office are expecting declines in the industry throughout the entire year of 2013. On a brighter note, the decrease in gas prices in Canada is expected to increase the amount of Canadian visitors in Florida by close to 6% by the end of next year. This would be extremely beneficial to the tourism industry in Florida.
These economists and representatives project that the unemployment rate in Florida will remain above 6% until 2016. Notice it is projections. It is based on past trends and if those trends continue without a change in the course to getting better, doing things to become better. I don’t about you, but that really bothers me. Economists, our legislators, politicians and it seems just about anyone along the line, continue to “project”, continue to “opinionize” really serious topics. Topics that can effect your future, effect your investments, and without being too dramatic, effect your life.
From this blog posting today is two-fold. Surely to provide our readers with information about the real estate market and what our State economists and legislators in Florida are talking about, what they are doing for South Florida homes and South Florida investments. But to also remind you, as a buyer in the South Florida market, as a South Florida seller and investor in the Florida real estate market. Educating yourself about Real Estate is important. Knowledge of the real estate market is important. Knowledge, education and an awareness are all things the Henri Frank Group realtors believe you should have when buying a home, selling your property and investing in Real Estate. The warning: beware and be aware of these projections. They are merely what they say they are projections. And it is my opinion, that these projections should not make your decision.
I am a FLorida licensed Realtor and CoFounder of the Henri Frank Group brokered by Remax Preferred. I also host the Real Estate Roundtable with Henri & Frank. I invite you to follow my Real Estate Blog.
Read the Henri Frank Group Blog:
Listen to the Real Estate Roundtable archives of radio shows: