International travelers helping tourist economy

In a review of recent findings of a quarterly survey of emerging market conditions conducted by Bergstrom Center for Real Estate Studies at the University of Florida, Historic City News learned that expectations persist that the real estate market will continue to fall.

Tim Becker, director of the Bergstrom Center, reports another troubling sign for Florida’s economy — the drop observed during the second quarter of 2011, was the first dip since 2009.

“At the end of the day, jobs drive the real estate industry,” he said. “The high unemployment rate in Florida means that the real estate market isn’t getting any better.”

Good news for towns like St. Augustine, though. “International travelers are helping our economy right now,” Becker said. Florida experienced a 3.3 percent increase in tourism in the first quarter of 2011, according to the UF report.

Becker believes that uncertainty in the economy may be rippling through Florida’s real estate market. “Political infighting in Washington D.C. over the debt ceiling and uncertainty in the economy caused Floridians to feel uncomfortable about their futures when the survey was conducted”.

UF conducts the survey by interviewing real estate professionals and analysts across the state. The total number of participants in the current survey is 172, who represent 13 urban regions and up to 15 property types.

The survey showed that the “absorption rate” or the rate in which inventory is being sold had declined in the single-family home market, although the outlook shows that those in the industry expect prices to rise for single-family homes.