Florida real estate experts believe the worst of the downturn is over. That's according to a quarterly survey by the University of Florida's Bergstrom Center for Real Estate Studies. The center asked appraisers, commercial real estate brokers, bankers, investors and others to take stock of the state's real estate market. Their verdict: Commercial and residential property have hit bottom.
This said, we need to be realistic in our real estate investment decisions. I do not expect an immediate bounce back in the Florida market. This state is battling record-high unemployment and tight credit that continue to hinder any recovery. This coupled with weak economy in the state, will keep increase in housing price down for a while.
The positive notes for the real estate market are:
1. Apartments. As former homeowners lose their homes to foreclosure, they need to live somewhere.
2. Life insurers and real estate investment trusts are beginning to buy investment properties again. Those real estate investors had taken a hiatus, but they have cash to spend and don't need mortgages to buy commercial properties.
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