California has been all the rage this week in regards to the housing recovery, but Florida is proving its upward trend will continue into 2013.
“Florida’s housing market is back, with great possibilities for the future – but those possibilities are only beginning to be realized,” said Dr. John Tuccillo, chief economist for Florida Realtors.
At a recent conference, top economists broke down the Florida economy and what that will mean for the housing market moving forward.
“The trend has been established for the housing recovery, but robust growth awaits more jobs and a stronger economy,” Fannie Mae Chief Economist Doug Duncan said. “Three years into the recovery, the current economic expansion is the weakest since World War II. Just over half of the jobs lost in the Great Recession have been recovered.”
In 2013, mortgage rates are expected to remain low with little change, Duncan added. Banks should continue to maintain high lending standards and a tight credit environment.
Across Florida, median sales prices are consistently rising and a decrease in distressed properties is putting upward pressure on prices.
Tucillo believes that, assuming the fiscal cliff problems are postponed, the employment rate in Florida will grow by up to 10% within the next year and home prices will jump by as much as 5%.
“I think the improvement in the market and rising prices will bring more potential sellers back into the market,” he said. “Signs point to a better year in 2013.”
