Florida Real Estate Update

A top housing industry economist warned home builders at a meeting with Southeast Building conference that the building industry will remain weak through 2006 and 2007 and possibly 2008. With rising interest rates and affordability has caused the market to slow. Many Florida has advantages over most states due to the strong job growth and could population of in-migration of residents. These strengths have remained in place for both new construction and resale homes. The property insurance crisis and affordability are negative aspects to deal with. Florida average home price appreciation is about 15% per year in past 5 years, which economist say is unsustainable. Economist also mentioned if oil prices continue to rise and another shock hits US ecomony such as a bird flu attack could tip us into a recession. Courtesy of Orlando Sentinel 8/3/06.