A Bright Outlook for Florida Real Estate in 2008!

Moving in the Right DirectionAs we begin a new year, Florida real estate professionals are looking for a market upturn. And thanks to the state’s positive demographic and economic trends, the prospects for 2008 appear favorable, especially in the second half of the year.In 2008, more than 300,000 people will move to Florida, generating a demand for 150,000 for-sale and rental homes. Meanwhile, the state’s economy is likely to add 175,000 new jobs, strongly outperforming national averages. And a significant percentage of Florida’s 80 million domestic and international visitors will consider buying second homes in the Sunshine State. “Florida will continue to lure retirees and entrepreneurs looking for a warm climate where they can enjoy an active lifestyle,” says Linda C. Loomis, sales associate, John R. Wood Inc./Realtors® in Naples. “With golf, boating, fishing, tennis, beach going, swimming and a host of other outdoor activities at their doorstep, Florida offers a healthy and appealing lifestyle.”Economists and real estate experts interviewed by Florida Realtor® are cautiously optimistic about the state’s growth prospects for 2008. Sean Snaith, director, Institute for Economic Competitiveness (IEC) at the University of Central Florida, Orlando, expects the state’s growth rate to pick up in 2008. The institute’s recent “Florida & Metro Forecast, 2007-2010” says the state will see a distinct pickup in economic activity with a 2.1 percent increase in new jobs in 2008—nearly double the 1.2 percent projected for the United States as a whole. “Florida continues to grow,” says Snaith, “with Orlando, Tampa Bay and Jacksonville at the top of the list in terms of employment growth through 2010.”In the real estate sector, Snaith notes, rising prices on Florida’s coasts are shifting historic migration patterns toward the center of the state. “People are still coming to Florida,” he says, “but it’s the interior counties that are most likely to attract new residents and businesses.” For Florida real estate professionals, understanding the trends affecting their local markets is essential to success in the year ahead, according to economist Lewis Goodkin, president, Goodkin Consulting, Miami. “The more knowledgeable you are, the more opportunities you have to profit. It’s essential to demonstrate that you have the answers that people are seeking.”Here’s a closer look at the regional markets around the state.

Palm Beach/Treasure CoastOne of the state’s most dynamic submarkets is northern Palm Beach County, which is beginning to enjoy the benefits of a growing biotechnology cluster focused on Scripps Florida in Jupiter.“We’re beginning to see significant job-creation activity,” says Brad Hunter, director, South Florida region, MetroStudy in Boca Raton. “It’s not the cavalry coming over the hill, but the biotech corridor will grow and create a solid foundation of high-wage jobs northward into St. Lucie County. That will definitely enhance the long-term value of residential properties.”Also stimulating commercial development are new St. Lucie interchanges on the Florida Turnpike and Interstate 95. Fishkind says more than 15 million square feet of commercial space is planned along Becker Road in Port St. Lucie, including a 2 million-square-foot regional mall. “If you look at the big suburban office nodes on I-95—Fort Lauderdale, Cypress Creek, Boca Raton, West Palm Beach and PGA Boulevard—you’ll see the next one will be in Port St. Lucie,” he says. “Some of the residential builders got ahead of themselves, but the strength of demand and a drop in new construction will help absorb the excess inventory in 2008. This is a market to watch for the future.”Along with new jobs and development, the region will also benefit from the timeless appeal of its warm-weather lifestyle. As Marc Blasi, sales associate with Luxury Homes Florida, Palm Beach, says, “Unless people stop boating, fishing, playing golf or just lying on the beach, I think we’re pretty safe down here real estate–wise.” -from Florida Realtor Magazine, January 2008 by Richard Westlund page 32
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