Friday, July 26, 2013

Too Many Cash Real Estate Sales Says University Study

73% Of Condo And Townhome Sales Are All Cash

ORLANDO, FL. -- Florida’s housing market continues to strengthen, but housing finance remains constrained according to a new Business Forecast Report from the University of Central Florida.

As of May, 46% of single-family and 73% of townhomes and condominiums transactions are cash sales, which is inconsistent with a normal housing market says the report. Payrolls are growing, but it will not be until the 2nd quarter of 2016 before payrolls reach pre-recession levels in order for normal purchases to begin.

The industry sectors expected to have the strongest average growth during 2013-2016 are construction; professional and business services; trade, transportation, and utilities; education and health services; and leisure and hospitality.

The forecast predicts that during the 2013-2016 period, average annual growth in housing starts will be 31.4%, average growth in Real Gross State Product will be 3.2%, average real personal income growth will be 3.4%, housing starts will average 31.4% growth, and retail sales will average 3.9% growth.

Source: University of Central Florida Report

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