Why Real Estate Agents Are Optimistic About the Florida Market
According to the Bergstrom Center for Real Estate Studies, housed within Warrington College of Business Administration at the University of Florida, optimism has reached its post-recession apex. The last time general sentiment among real-estate professionals was so high was in 2006. Measuring businesses owners’ sentiments about their companies’ prospects, the University of Florida’s Commercial Real Estate Sentiment Index marked its highest point since the third quarter of that same year. The Director of the Bergstrom Center, Timothy S. Becker, indicated that two very likely contributors to these positive developments are the consistent and continuous growth in the tourism industry and the increase in the number and quality of jobs available.
A Revitalized Floridian Economy
Developer inventory of newly constructed properties has risen in tandem with property occupancy. These trends foreshadow the eventual abatement of multifamily occupancy of properties, fueled by the sudden adrenaline shot of optimism. By next quarter, expected occupancy and rental rates are likely to stabilize. The capitalization rate has not experienced the same degree of fluctuation. Attractively low interest rates, on the other hand, have enticed greater numbers of investors back into the real estate market.
In terms of planning for the next few months, these developments are quite likely to persevere, spurred by renewed private investment. Of those 97 businesspeople who responded to the University of Florida’s Commercial Real Estate Sentiment Index query, the overriding majority indicated an enduring optimism for the future of the economy of the state. These respondents represented 13 different urban regions within the State of Florida, as well as approximately 15 different property types. For more information visit Marina Title’s Realtors page.
Further Noteworthy Study Findings
The Bergstrom Center’s study also noted that, as determined by the University of Florida’s Bureau of Economic and Business Research (BEBR), general consumer sentiment has reached its highest point in over 10 years: 96.8. These gains were made over the course of this year’s first quarter. Many investors, local or regional, expect the availability of capital to increase over the short term.
57,000 new jobs were added over that same quarter. Unemployment remains at 5.5 percent, its lowest point since 2008. The greatest gains in employment were made in the construction, hospitality, health and education industries. As noted above, tourism continues to inject new life into Florida’s economy. As tracked by Visit Florida, total visitation rates have risen by 5.1 percent since the beginning of 2014. To put it another way, 98 million people have visited Florida during that year. The near future is looking even brighter, as 100 million visitors are projected to patronize the state in 2015.
The Real Estate Market
Because of these findings, the outlook for Florida’s real estate market is clear and unclouded. Business is booming, investors have returned and a general sentiment of positivity pervades a number of growing industries, including that of real estate. Therefore, Florida real estate agents are optimistic about the market.
For more information regarding the Floridian real estate market, or for answers to questions concerning the purchase or sale of property, contact us by phone at (305) 901-5628 or by email at info@marinatitle.com.
