Hank Fishkind: Florida’s housing market now in slow recovery

In his weekly radio address, economist Hank Fishkind stated that popular perceptions about the housing market are wrong. Fishkind believes that the Florida real estate market reached bottom a few months ago. He looks for trends in statistical releases, and says that things may not be great but there is not data indicating that things are getting worse.

“The variance between the real economic data and people’s perceptions was enormous,” Fishkind said. “While home starts have dropped 36 percent from their peak, starts have stabilized over the last six months with no further erosion. Friday’s report on new home sales confirms that the market has bottomed out. Sales actually increased 2.7 percent to an annual pace … and the inventory of new but unsold homes declined.”

Fishkind went on to say, "“Importantly, the sales of existing homes were again stable for the seventh month in a row,” he says. “While recovery may be some time off, it is clear that Florida’s housing markets have bottomed out.”

“The more overbuilt markets will take longer to recover,” Fishkind says. “But fears that prices will drop significantly are unfounded. And so is the pervasive panic. The economy is stronger than the reports about it.”

Leave a Comment