Wednesday, March 29, 2006
Is it "Boom" or "Bust"?
Given the turbulence we've seen with real estate values since Hurricane Katrina hit the Gulf Coast, many people are asking "are we still in a boom - or has it gone into a bust?".
With a significant amount of property under management in Florida, we can understand what speculators and homeowners in the area are concerned about.
But we focus on fact and not hype. The fact is that the Katrina tragedy wreaked havoc on the economy.
Not to mention the skyrocketing prices of oil and gas, as it relates to Florida real estate, we have seen a large increase in materials costs (concrete, plywood, and lumber), and for labor as well which has contributed toward a labor shortage.
The disastrous after effects of the Hurricanes in Florida last season have shaken some speculators and investors, and we've seen a cooling in the high double digit appreciation that many parts of the State enjoyed in the past three years.
However, we still expect a steady double digit increase based on facts alone.
1) 76 Million baby boomers are hitting retirement age, and 23% of them are expected to move to Florida
2) Behind California, Florida is the second fastest growing state for in-migration
3) Economic incentives provided by Florida for businesses to re-locate from elsewhere in the US
4) Quality of Life - such as seen in Cape Coral, Florida...coined "The Venice of the West!". Provides peace of mind, tranquility, numerous golf courses, access to Gulf of Mexico for boating, and is minutes away from some of the top beaches in the world.
So, while the "Boom" may not be the breakneck speed experienced in the past 36 months, hang on as we'll continue to see steady double digit growth in Florida real estate, in particular, Cape Coral.
With a significant amount of property under management in Florida, we can understand what speculators and homeowners in the area are concerned about.
But we focus on fact and not hype. The fact is that the Katrina tragedy wreaked havoc on the economy.
Not to mention the skyrocketing prices of oil and gas, as it relates to Florida real estate, we have seen a large increase in materials costs (concrete, plywood, and lumber), and for labor as well which has contributed toward a labor shortage.
The disastrous after effects of the Hurricanes in Florida last season have shaken some speculators and investors, and we've seen a cooling in the high double digit appreciation that many parts of the State enjoyed in the past three years.
However, we still expect a steady double digit increase based on facts alone.
1) 76 Million baby boomers are hitting retirement age, and 23% of them are expected to move to Florida
2) Behind California, Florida is the second fastest growing state for in-migration
3) Economic incentives provided by Florida for businesses to re-locate from elsewhere in the US
4) Quality of Life - such as seen in Cape Coral, Florida...coined "The Venice of the West!". Provides peace of mind, tranquility, numerous golf courses, access to Gulf of Mexico for boating, and is minutes away from some of the top beaches in the world.
So, while the "Boom" may not be the breakneck speed experienced in the past 36 months, hang on as we'll continue to see steady double digit growth in Florida real estate, in particular, Cape Coral.
