Florida's Economic Confidence Highest Since April 2007

26, June 2013

Floridians are growing increasingly optimistic about economic conditions in the Sunshine State. Several factors are adding up to provide confidence to state consumers. For starters, the stock market saw record highs in June, and the unemployment rate in the state continued to fall, staying a half percentage point below the national average.

“The last time perception of current buying conditions reached this level was April of 2007. That was the beginning of the collapse in the housing market.”

-Chris McCarty, director of UF’s Bureau of Economic and Business Research

The study, conducted by the University of Florida's Bureau of Economic and Business Research (BEBR) also acknowledged that consumers believe now is a the best time to buy big-ticket items, such as a lare television. That number has reached a post-recession high.

The median price for Florida homes has also continued to grow. The median price for an existing single-family home is currently $171,000. That is the highest it as been in Florida since September 2008.

Below is an article from UF News:

GAINESVILLE, Fla. — Florida’s consumer confidence keeps inching higher, rising one point from May to 82 this month — another post-recession high, according to a University of Florida survey.

June is the fourth consecutive month to show a rise in the sentiment of Floridians.

Four of the five components measured in the survey went up, and one remained the same. Respondents’ overall opinion that they are better off financially now than a year ago rose three points to 70, while their belief that their personal finances will improve a year from now remained at 82. Their outlook for U.S. economic conditions over the coming year rose two points to 83. The survey-takers’ long-term view for the nation’s economic health over the next five years rose one point to 83.

Finally, the survey shows that consensus of whether now is a good time to buy a big-ticket item such as a television went up two points to a post-recession high of 93.

“The last time perception of current buying conditions reached this level was April of 2007,” said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research. “That was the beginning of the collapse in the housing market.”

Several things help explain Floridians’ current optimism. The stock market reached record highs by early June. In addition, the state’s May unemployment rate was 7.1 percent compared with the national 7.6 percent figure.

This decline from April’s 7.2 percent jobless figure occurred as Florida’s labor force was increasing, which meant it was due to an increase in jobs, McCarty said. Home prices have also kept rising. The median price for an existing single-family home is $171,000 — the last time it was that high in Florida was September 2008.

Read the article at http://news.ufl.edu/2013/06/25/cc0613/.

Download BEBR's report at http://www.bebr.ufl.edu/cci.

TRIMARK PROPERTIES | STAFF | 26-JUN-2013