Floridians are feeling better about the real estate market, and hopes are rising that government stimulus money will help to unfreeze markets and reinvigorate business, according to a new University of Florida survey.
"People believe, in some instances, that a lot of what the government is doing to try to inject capital into the system may actually have some effect," said Timothy Becker, director of UF's Bergstrom Center for Real Estate Studies, in a news release. "Positive responses to several questions lead us to believe there is light at the end of the tunnel."
In December, the survey showed that confidence in real estate markets had sunk to its lowest levels since the survey began in July 2006.
After three years of steady decline, respondents’ perception of their own business outlook has improved, according to the survey.
Those surveyed said they expect some government money will start trickling back into real estate as investors gain confidence with the steps banks are taking to rid their balance sheets of bad assets, Becker said.
However, the fact that the capital is not yet available is still a concern, he noted.
Retail is worse off than any other real estate sector because consumers, fearful about their future, are buying less, Becker said.
Apartment occupancy also is falling, as those who are losing their homes favor moving in with family or friends, rather than renting apartments.
Single-family housing prices are expected to continue to drop, especially in areas with a glut of foreclosures, Becker said. Because banks want to get these properties off their books as they hit the market, housing prices are likely to fall as these properties are sold, he said.
The survey, based on 335 responses from leaders and professional advisers in the industry, was completed in March.
