The eConoMiC ou TLook haS Been on The RiSe in The SunShine STa Te.
florida’s real gross domestic product (GDP) grew for the third consecutive year in 2012, according to the
bureau of Economic analysis. With a growth rate of 2. 4 percent, the state ranked 14th in the nation and
was just below the national rate of growth of 2. 5 percent. Personal income also increased in 2012, rising
3. 2 percent over 2011. Second-quarter 2013 figures reflected further personal income growth of 1.5 percent.
Despite these improvements, economists don’t expect florida to return to a state of “normalcy” until fiscal-year 2016-2017, according to a report from the state’s Office of Economic and Demographic research.
The housing market is one of the sectors leading the recovery in florida, however. This past October, single-family closed sales in the state increased 6. 5 percent year over year. In addition, the median sales price of
a single-family home grew from $145,000 in October 2012 to $169,000 this past October, a 16. 6 percent
increase, according to florida realtors.
Days on the market and inventory figures are improving, as well. The median number of days a single-family home sat on the market decreased 20. 7 percent year over year this past October. The months’ supply of inventory also decreased from 6.1 in October 2012 to 5. 5 this past October, a 9. 6 percent decline.
orlando home sales and prices
Things are looking up in the Orlando
area. This past October, the median
sales price was $154,500, a 26. 12
percent year-over-year increase, according to the Orlando regional realtor association. Closed sales took
a slight dip, however, declining from
2,582 in October 2012 to 2,312 this
past October. New listings increased
18. 31 percent in the same time frame.
Taking a longer view, the housing
market in Orlando is clearly in recovery mode. according to the Orlando
regional realtor association, the
median sales price in the Orlando
area increased 22.5 percent in the
first 10 months of 2013, and closed sales increased 9. 99 percent in the same time frame. Excluding
distressed sales, florida was one of five states with the highest home-price appreciation this past October, according to CoreLogic.
although florida still suffers from
high delinquencies and foreclosures, the outlook is improving. The
percentage of loans in foreclosure
decreased from 10. 58 percent in
second-quarter ’ 13 to 9. 48 percent
this past third quarter, according to
the Mortgage bankers association
(Mba). florida still had the highest
percentage of loans in foreclosure in
the country this past third quarter,
but New Jersey took over the number one spot for foreclosure starts.
In terms of mortgage delinquencies,
florida is showing some improvement, as well. This past third quarter, the delinquency rate for mortgage
loans on residential properties in florida was 7 percent, according to the Mba. This is the third-lowest rate
in the South atlantic region, which has an overall delinquency rate of 7. 33 percent. It is higher than the national rate of 6. 41 percent, however.
after soaring as high as 11. 4 percent in March 2010, unemployment has decreased gradually in florida.
This past October, the statewide unemployment rate was 6. 7 percent, well below the national rate of
7. 3 percent. The figure also represents the lowest unemployment rate in florida since august 2008.
The state added 44,600 jobs in the month, and compared to October 2012, the number of jobs in
the state increased 2. 5 percent, the fastest job-growth rate since June 2006, according to the florida
Department of Economic Opportunity.
BY IVANNA C. SUKKAR BY JENNIFER E. GARRETT
3 Cities to Watch
The state’s largest metropolitan area is seeing a resurgence in condominium construction. after the
housing crisis, the market was flooded with condos,
but now demand is outstripping supply. according
to The Wall Street Journal, there are 118 condo
towers proposed for the Miami area, including
35 currently under construction. International demand — fueled by cash buyers — is driving the increases in this sector.
The Tampa market was feeling some dampening effects from the implementation of the biggert Waters
flood Insurance reform act. flood insurance premiums took steep hikes for many with subsidized
rates, and this has discouraged some prospective
buyers, according to the Tampa Bay Times. This past
October, single-family home sales decreased 5 percent year over year, although the median home price
increased 16 percent year over year.
Institutional investors are driving the housing market in Jacksonville, according to data from realty Trac.
Investor sales accounted for more than 20 percent of
home purchases in the area this past October, and
this push led to a 29 percent increase in the median
sales price. foreclosure auction sales accounted
for nearly 9 percent of all sales, as well, ranking
Jacksonville second in the country in that category.
sources: bureau of Economic analysis, CoreLogic, florida Department
of Economic Opportunity, florida Office of Economic and Demographic
research, florida realtors, Jacksonville business Journal, Mortgage
bankers association, Orlando business Journal, Orlando regional realtor
association, realty Trac, Tampa Bay Times, U. S. Department of Commerce,
U. S. Department of Labor, The Wall Street Journal
WHAT THE LOCALS SAY
“The market is on fire right now. It’s really coming
from every angle: less and less short sales and
foreclosures, and values are going up. New
construction has absolutely exploded. We’re
seeing a lot of move-up buyers right now. The
areas closest to the cities came back first, but the
entire state seems to be doing phenomenal.”
— MAT T ANDRE, MORTGAGE LOAN ORIGINATOR,
FBC MORTGAGE LLC
Jennifer E. Garrett was editor of Scotsman Guide. for questions on this article, call (800) 297-6061 or e-mail firstname.lastname@example.org.
oRLando-aRea hoMe SaLeS and pRiCeS
Source: Orlando regional realtor association
Median sales price Closed sales
FLoRida FoReCLoSuReS and deLinQuenCieS
source: Mortgage bankers association
Q3 ' 12 Q4 ' 12 Q1 ' 13 Q2 ' 13 Q3 ' 13
foreclosure inventory Total past-due loans