According to the latest survey at the University of Florida, uncertainty and fear is holding back the recovery of the real estate market. Florida is facing the highest unemployment rate in 35 years, at a whopping 11% during the month of September; many economists believe that the state will recover at one of the slowest rates in the nation. The survey conducted is one of the most extensive surveys of real estate analysts and investors in Florida. It represents 10 of Florida's urban regions as well as 15 different property types.
“Florida was the first one into the recession and it’s probably going to be the last one out,” stated Timothy Becker, director of UF's Bergstrom Center for Real Estate. The latest survey, conducted by Becker, states that commercial real estate is the weakest link in the economy. Retailers are struggling and in effect, they are not renewing leases, but are closing the doors to their businesses instead.
With another wave of expected foreclosures around the corner, Becker stated “There is a lot of speculation that there could be a double-dip recession, where we recover just a little bit and then go back into recession again.”
“As one of our respondents put it, ‘Uncertainty is the most dangerous market condition delaying recovery,’” Becker said. “While there are going to be improvements some quarters and declines other quarters, we’re mostly going to be bouncing along the bottom for awhile.”
