Federal Reserve: Florida no longer South's worst home construction market

The worst of the housing crisis may have passed for Florida.

So suggests the Federal Reserve in its most recent "beige book," its summary of national economic activity that came out Wednesday.

The Fed divides the country into 12 districts. We're part of the sixth district centered in Atlanta and comprising all of Florida, Alabama and Georgia and parts of Tennessee, Mississippi and Louisiana. Here's the mixed news dealing with the housing industry in Florida:

"Reports from homebuilders and Realtors indicated that new and existing home sales remained below year-earlier levels for July and August. Contacts reported that sales activity was mixed; some District contacts noted further weakening while others reported modest strengthening. Weakness was most pronounced among Georgia builders. Modest improvements in new and existing home sales activity were noted by some Florida contacts. The majority of builders reported that construction was significantly lower than a year earlier. Overall, new home inventories continued to fall while existing home inventories rose slightly. Home prices continued to decline across much of the District. The outlook for residential sales and construction over the next several months remained subdued; however, most contacts did not anticipate further significant weakening."

Comments

[Fuzzy Bear]

The outlook for residential sales and construction over the next several months remained subdued; however, most contacts did not anticipate further significant weakening."

The key word is significant, however, I would predict there will be continued weakening due to the jobs and income data for the Tampa Bay market.

[Steve Simon]

The ripples will go back and forth between most areas of the country. The georgia folks having a turn in the bucket is logical, and doesn't preclude the Florida market from returning to the number one loser spot :(
There have been no major changes to the way business was being done:
no incentives of significant size to artificially stimulate...
no reduction of interest for niche groups to provide a "Buyside" motivation...
no groundbreaking announcements re: energy policy to calm fears of a resurgance of $4.50 and higher per gal. prices...
no lenders (that I know of) being prosecuted for fraud at the federal level; at the last DBPR instructor's contiuing education seminar, attorney's from the DBPR were talking about hundreds of "Air Loans", and Air Loan is one where there isno property, and there is no real estate, there is only a fraudulent file! Anybody go to jail yet?
Bailouts will only beget quiet time and the likelyhood of a repeat performance.
Tough rules for credit qualification must be applied and held fast (tough times to be sure) that is the way you comeback to a solid foundation.
Just my thoughts :)
You can read more on my blog (or not)...

[contractors okotoks]

good news!

[new home builders California]

Florida deserves to be recognized positively...