Florida Housing: A Sleeping Giant?

Implications: The market is searching for the light at the end of the tunnels...that light exists in meeting the consumers needs in price and location.

Analysis: The Florida housing market is continuing its downturn into the second quarter of 2007 and searching hard for the light at the end of the tunnel, however with the continued bad press the market is struggling to get its legs under itself. The article under review states that in counties such as Brevard the market is pushing further away from the more urban areas therefore the market is moving further out in search of lower pricing. I am a proponent of the idea that the future of the real estate market in Florida will be strong once the home values reach the marketable level, however I also believe that homebuyers will be looking closer in as opposed to further out locations. What I believe will happen is the existing communities that are in the higher demand areas will need to find the real market pricing in order for them to be successful, and in some cases this will mean the underlying landowner will have to take some sort of loss of either profits or equity to move their product. It is my belief that their is no less customers in the market...just more options, and as inventory levels stay high the consumer is looking for the best value in the best locations. This article is suggesting that the consumer will forgo location for price, and it is my belief that the consumer will demand BOTH price and location before they return to the market.