A new, expansive survey by the University of Florida has nothing but positive predictions for Florida's housing market.
The Survey of Emerging Market Conditions for 2012’s first quarter was nothing but positive, showing many good signs for Florida’s real estate market.
Conducted by the Bergstrom Center for Real Estate Studies in the Warrington College of Business Administration from the University of Florida, the survey sampled 189 participants, making it the most extensive survey of its kind of Florida’s real estate professionals.
Economically, the survey found Florida’s market showing substantial signs of growth. In the first quarter alone, the unemployment rate dropped by nearly a full percentage point, and the state has added 66,000 jobs to the workforce. That job growth was also widespread, with unemployment falling in each of the economy’s major markets over the quarter.
That economic news, the survey continued, has positively impacted Florida’s real estate markets. Expectations of occupancy and rental levels improved in the quarter for every property type, and even banks became more active in the capital markets
“The lenders sentiment reached its highest level since the first quarter of 2007, reflecting an improving lending environment,” the survey stated. “The improving economic conditions are having a positive effect on property fundamentals. Respondents indicate that occupancy and rents are improving in almost every asset class.”
The results for the single-family market were similarly optimistic, as the outlook for the market reached a survey high in the quarter. Low inventory levels, the survey found, has been a boon for demand, and the limited supply of quality homes in or near urban environments has been in particularly high demand.
Just yesterday, in fact, we reported on this phenomenon, with comments from Nancy Iliffe, a Realtor at Shelton and Stewart Realtors in South Miami.
“In the month of May, I’ve had three closings,” Iliffe said. “All three went under contract in less than a week.”
The survey was clear, though, that builders too have responded to that lower supply, and have begun building smaller properties with more competitive prices. However, low prices will not be a common feature of the market. As more positive migration occurs in Florida and the job markets respond accordingly, positive pressure will be applied to prices and inflation will occur (something that’s already in the works, in fact).
And even the outlook for residential absorption, long the bane for Florida’s housing market, has improved. The outlook rose to the highest level in the history of the survey, with most respondents believing that absorptions would increase during the second quarter. Such is that belief, in fact, that builders are now purchasing low-priced lots and are beginning developments of smaller, more competitively-priced homes
At every stage, it appeared the market reflected the sentiment expressed earlier this week by Jodi Macken of Macken Realty: “We believe very strongly the recovery is here to stay.”