Real Estate Survey
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Florida’s high unemployment rate and the state of our country’s financial markets continue to have a negative effect on real estate in the state of Florida.
A University of Florida survey indicates uncertainty in the marketplace still exists. The quarterly survey, which interviews real estate professionals about their predictions for the future of the market, shows that until the economy heads in the right direction, the real estate industry will continue to suffer.
Tim Becker/UF Real Estate Researcher: “It really hasn’t changed a lot since last quarters survey. I think we still have a couple factors out there that are really having an impact on what respondents think about the market and that’s unemployment and the financial market.”
The unemployment rate in Florida is at 12%. The more people who are unemployed, the less money they will spend, and they aren’t going to buy a house or need office space.
Tim Becker/UF Real Estate Researcher: “Cap rates continue to go up, occupancies continue to go down, rental rates continue to go down across most property types, so there really is a challenge to the fundamentals of real estate and it will continue to be that way so long as there’s a high unemployment rate and lack of confidence in the consumer.”
Researchers say it’s probably going to be a tough 2010 but are hopeful there will be a rebound for the industry in 2011. But, it all boils down to what the job market looks like.