Despite Irma, Florida’s Housing Market Poised for Recovery

a top view of residential properties in Fort MyersThe residential property market in Florida has recovered in recent years with a rebound in home prices and a stabilizing economy among other factors.

Home prices have increased once again after falling by as much as 50%, while low unemployment also helped the market’s recovery. The jobless rate in the state reached lower than the nationwide average, improving to 4.1% from 11.2%.

Housing Recovery

Sean Snaith, University of Central Florida’s Institute for Economic Competitiveness director, said that Florida has led the country in terms of overall economy by 2012. A strong tourism sector has contributed to the housing sector’s resurgence.

Most of these tourists may have decided to relocate to the state, as it now has the third largest population in the US. The pace of recovery also helps those looking for a mortgage in Fort Myers and other cities, since growing demand fuels competition among lenders.

However, the pace of recovery has become under threat by Hurricane Irma, as experts believe that rebuilding after the storm serves as a major challenge.

Lesson Learned

Construction workers will be the key in rehabilitation efforts after Hurricane Irma and finding them may be difficult, according to Chris McCarty, University of Florida’s bureau of economic and business research director. They are vital for ensuring tourists and residents still come back to Florida, as opposed to what happened in New Orleans after Hurricane Katrina.

However, people will still decide to stay in Florida even after the storm, according to Turnberry Associates CEO Jeff Soffer. Regarding real estate prices, Soffer expects that the damages from Irma will not have any effect at all.

Florida’s housing market will likely remain as an attractive option for both buyers and investors post-Irma, although the state government should have contingency measures to make sure the supposed economic damages do not linger for a long time.