According to the findings of a new consumer confidence survey by the University of Florida, Floridians are now slightly more confident about the improving US economy than they were the last year. Released on Tuesday, January 28, the report found consumer confidence in Florida rise to 78, one point higher than the previous sentiment index.
The Florida Consumer Attitude Survey
For this statewide survey, the University surveyed over 400 residents over a two-week period from January 14 to January 28. The monthly survey conducted by the Bureau of Economic and Business Research of the University of Florida measures the mood of Floridians towards buying Florida real estate.
Survey takers have to answer two questions about the current financial scenario and three questions about the future exceptions they have about the financial condition of the state. These questions are repeated by the University of Michigan in its national (telephonic) survey.
Findings
To the first question of how the respondents (and their families) were getting along financially in the recent days and if they felt in a better financial position than their position a year ago, respondents revealed their sentiments were slightly lower – their sentiments fell a point below to 68.
The second question in the survey asked citizens their views about buying major commodities like stoves, televisions, refrigerators and so on for their homes. Their sentiment on whether it is currently a good time to make such purchases fell six points, from 91 to 85.
When asked how they perceived their financial situation to be, a year from now – the same, better or worse, respondents’ sentiments remained unchanged, at 78. They were however, clearly optimistic about the business conditions in the US as a whole, over the next 12 months. Their confidence that they would have good times financially jumped three points from 73 to land at 76 this time around.
Their confidence in the larger US economy for a five-year period was even higher. Jumping nine points, Floridians sentiments that the nation’s health would get better and better over the next five years measured at 83.
Implications
Chris McCarty, the director of the Bureau of Economic and Business Research’s Survey Research Center says 2014 is set to be a different year all-together for consumers. Since the real estate crisis of 2007, consumers have faced loss of homeowner equity, declines in stock market and crunchy budgets, but with the stock and housing markets recovering recently, the Federal Reserve is in a better position to purchase securities and treasuries to support the US economy.
How This Affects Orlando Real Estate
Orlando is one of the biggest housing markets in Florida and because of the improving economy in Florida, Orlando real estate agents are expecting a substantial boost in the Orlando real estate market. Even if the market continues on a positive trend, I don’t believe that we’ll see a market with overinflated home prices to the extent of what we saw in 2006 or at least I hope not.
