Central Florida Economy Growing

The 4th Annual Florida Real Estate Land Conference
Economists Agree: Cautions Short-term Outlook; Positive Long-term Outlook

The convening of the 4th Annual Florida Real Estate Land Conference hosted exclusively by Dean Saunders, Coldwell Banker Commercial Saunders Real Estate (CBCSRE) in Lakeland, FL, was an exercise in poking through and around the perceived woes and economics of real estate, both in the nation and in Florida today.

This year’s presentation proved to be a judicious and hopeful glimpse into the economy that fuels real estate decisions for Florida and for Polk County.

Economic forecasts were presented by influential economists and a legislative lobbyist. This year’s conference included respected authorities Dr. Sam Chandan, Chief Economist and Senior Vice President, REIS, New York, NY; Dr. Sean Snaith, Director of the Institute for Economic Competitiveness/University of Central Florida, Orlando, FL; and Wade Hopping, Former Florida Justice Supreme Court, Attorney, Land Use and Environmental Law, Hopping Green & Sams, Tallahassee, FL.

Priming the audience for the well-anticipated economic news was Dean Saunders, ALC, owner of Coldwell Banker Commercial Saunders Real Estate, and host/sponsor of the annual event.

Opening remarks by Saunders observes, “We see less real estate activity due to the lack of consumer confidence but it is different from other recessions. There is money to be invested, however, buyers are not sure where the bottom is and are cautious. We’ve also lost the activity of two major markets: large tract development and the investor/speculator, which brings to us a soft market.”

Wade Hopping, former Justice Florida Supreme Court, is a legislative attorney working in the Tallahassee legislative process since 1958 and who focuses on land use and environmental law. Hopping’s overview of the legislative year included the sub-prime debacle, “irrational exuberance” in the real estate markets, insurance availability and rate problems run up in Ad Valorem taxes, foreclosures by the hundreds, gasoline price increases, and national economic woes all conspired to reduce Florida’s 2008-2009 budget by $6 billion compared to the state’s $72 billion budget two years ago. The state budget reductions have impacted all state activities including schools, State employees, healthcare recipients, everglades restoration, university funding, and community college funding.

Hopping’s advice for property owners: “With the housing and real property markets suffering economic woe, it is important that those who own property become active in Florida's legislative process. Bad market conditions are good times for local government officials, legislators, and regulators to examine the project review process and eliminate unnecessary bureaucracy."

Dr. Sean Snaith, Director of the Institute for Economic Competitiveness at the University of Central Florida states that, “The short term malaise in real estate and the credit industry is a bump on road compared to the longer trends for demographics and economics that shine a favorable light on Central Florida. Lakeland is in a good position, given the central metro area and the rise in prices in coastal areas that align Polk County for growth.”

Snaith suggests strong trends showing demographic migration from the once popular coastal regions to the interior of the state. Due to the rising costs of real estate, property insurance, and basic cost of living on Florida’s coasts, the fastest growth will be in the interior of the state.

Dr. Sam Chandan, Chief Economist of REIS, concluded the event with an historical and a current view of the nation’s economy as a whole. “July 2007 saw US equities markets at their peak; an all-time high following the years of the housing and consumption boom. Now in 2008, corporate profits are down, equities markets have fallen from their peaks, and we find more houses than households and slower consumer spending growth. We will need to bear with a further tightening of credit markets and a protracted period of slower consumer spending growth.” The next couple of years will be challenging; however, Chandan encourages confidence in the long-term resilience and flexibility of the US economy."

Closing comments by Saunders summarizes, “There is a slowing of activity and softening of pricing, but ultimately, pricing will come to reflect economic-based expectations. Even in this market, we fully expect to have more closings this year than last year.”

Dean Saunders, ALC, is a Licensed Real Estate Broker and owner of Coldwell Banker Commercial Saunders Real Estate. Since 1996, Saunders has provided professional land and commercial real estate services. Winning many national and regional awards, the former Florida legislator is considered an expert on land and conservation and is quoted in many real estate and business publications. For more information on the company and on Dean Saunders, please visit http://www.saundersrealestate.com/.