The housing market is giving many Floridians time to catch their breath, something many of them haven’t been able to do since the economic nosedive began in 2007.
“There are still threats that could put the Florida in an economic chokehold, but all indications are that the Sunshine State is finally recovering and that the housing market is playing a big role,” said Sean Snaith, a University of Central Florida economist in his Florida Economic forecast released today.
Not only are more homes being constructed and sold, but the increase in home values is also giving some homeowners more choices.
“The increase in house prices continues to lift more and more borrowers in the state above the surface of the water,” Snaith said. “Getting above water in their mortgage provides mobility and raises confidence that having a home that is underwater took away. That means they are more likely to spend, which drives the economy.”
The bottom line is that the housing market is finally recovering from deep and protracted depression. The uncertainty of how exactly the national Affordable Care Act will be implemented and the economic crisis in Europe loom and could derail the nation and thus the state’s recovery. But for now, the horizon looks promising.
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Highlights from the forecast include:
Snaith is the director of UCF’s Institute for Economic Competitiveness. He is a national expert in economics, forecasting, market sizing and economic analysis who authors quarterly reports about the state of the economy. Bloomberg News has named Snaith as one of the country’s most accurate forecasters for his predictions about the Federal Reserve’s benchmark interest rate, the Federal Funds rate.
Snaith also is a member of several national forecasting panels, including The Wall Street Journal Economic Forecasting Survey, CNNMoney.com’s survey of leading economists, the Associated Press Economy Survey, the National Association of Business Economics Quarterly Outlook Survey Panel, the Federal Reserve Bank of Philadelphia’s Survey of Professional Forecasters, the Livingston Survey, Bloomberg U.S. Economic Indicator Survey, Reuters U.S. Economy Survey and USA Today Economic Survey Panel.
The Institute for Economic Competitiveness strives to provide complete, accurate and timely national, state and regional forecasts and economic analyses. Through these analyses, the institute provides valuable resources to the public and private sectors for informed decision-making.