Real Estate Market in the Green - Real Estate | Financial Buzz

Real Estate Market in the Green

Real Estate, CRE, Randy, Land SolutionsIt’s almost official now! As per a review of the third quarter of South West Florida’s real estate market, it is slowly recovering from recession. A steady upswing of commercial sector has been observed, that dipped hard for approximately two years post the residential construction 2006 implosion.

The review was done by three individuals: Denny Grimes from Denny Grimes & Co, Stan Stouder from CRE Consultants and Randy Thibaut from Land Solutions Inc. They examined how the Florida real estate sector was treated by each quarter. 

Surging commercial sector

According to Stouder, the comeback of the commercial sector is the “echo” of the earlier revival in the residential sector, which reflects the principal role of home building within the local economy. He said that when people begin to buy houses, individuals in almost all the sectors start working again. He cited the example of plumbers, air-conditioning contractors, electrical contractors and drywall. Residents with a lot of money in their pockets are inspiring begin with new retail space construction activity like Audi and Harley-Davidson (NYSE: HOG) dealerships at Interstate 75 and Daniels in the southern part of Fort Myers.

Grimes hold the opinion that the balance of demand and supply for residential market is quite stable. According to him, it is a retinal market and lends itself to an idea of a predictable and boring market.

Thibaut, known for his work in huge residential development land sales, says that the first splash of the market was done by builders who had foresight to purchase land at the very cheap before things started to improve. He is of the opinion that there is leveling of large land sales as the sellers come to the conclusion that construction has resumed and there is no need to sell land on cheap rates.

Positive news all around

The director of Economic Research Institute of Florida Gulf Coast University, Gary Jackson, said that the total picture remains favorable all over the country with a rise in manufacturing and employment. According to him continued recovery of the local economy is expected.  It is important for a place like Southwest Florida which is heavily dependent on people living outside the area limits to purchase homes. Visitors first come here as tourists, so the local economy is dependent on national and global events.

In case of commercial property, it is believed that the transaction volume will rise, albeit at declining rate. It may cross the 2006 volume, which was incidentally second highest of the pre-recession yearly volumes to touch $445 billion by 2016.

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