The Florida Economy Is Booming

Category: Finance, Real Estate.

Is the Real Estate bubble going to burst? While there are definitely going to be strong corrections in some overly priced markets there are other markets that will tolerate it differently.

We have heard this statement hundreds of times. Most of us have seen the Real Estate cycles. It wasn' t until the stock market decline in 1999- 2001 that many people started taking money out of stock and investing them in Real Estate that we started to see the boom. In the late Eighties and early Nineties Real Estate was in a lull. This was also coupled with very favorable interest rates. Many of these interest only loans have principal payments and increased interest payments coming due soon. Some cities are super inflated and this has caused many home buyers to get interest only loans because they could not afford to make payments on the traditional 15 or 30 loans.

This will force many people who purchased on speculation to sell there home quickly. We see this happening now in major cities in California and in Las Vegas, Nevada. As this begins to happen the listings on the MLS will begin to drop in price as one desperate seller lowers his price another will lower even further to stay competitive. Now with this understanding here is why Florida has a great shot at riding out this burst, maybe with a small temporary decline, only to keep a more realistic value increase. If you live in Florida have you tried to get your roof fixed lately? Florida has an over abundance of job opportunity.

How about fix your pool screening? You may have seen how backed up everyone is. Or even get an appliance fixed? It is very hard to find people to give services now. The Florida economy is booming. Look around and you' ll see all of the Now Hiring signs in retail stores.

Jobs are available. There are quite a bit of states that are actually loosing population where Florida is expected to grow very rapidly especially with the new influx of the baby boomers. Also, the population of Florida is fast growing. They are leaving there Northern homes, retiring and moving to more moderate climate. While some areas around the Country may be in danger of home and land value decreases, most of Florida may have a small slow down, but don' t look for a big burst here. The coastal areas of Florida have been growing like never seen before and it's not going to stop any time soon. It will retain it's value and be on the rise again.

Now might be the window of opportunity to invest.