| **Central Florida Real Estate led by hot | | | | As in the rest of Florida, the housing market |
| commercial sector | | | | is complex and unpredictable. It is being fed |
| | | | by a steady influx of new residents and a |
| Throughout 2005, commercial developers and | | | | booming job and commercial sector. People are |
| real estate investors in the Orlando area | | | | moving in from the Northeast, from the |
| have seen the same kind of impressive price | | | | Midwest, and from Latin America. |
| increases as home owners across Florida. One | | | | |
| of the hottest segments of the market is the | | | | **Effects of hurricane season on real estate |
| sale of apartments. Two of the Orlando area's | | | | activity short lived |
| largest apartment brokerages have done more | | | | |
| than $2 billion in sales this year. It is | | | | The Florida hurricane season of 2005 was one |
| expected that 20,000 apartments have changed | | | | of the worst on record. In the southern parts |
| hands and will be sold as condos in Orlando | | | | of the state, home sales declined in October |
| in 2005. | | | | slightly, primarily due to insurance issues. |
| | | | Most insurers stopped issuing new policies as |
| One apartment complex developed by the Disney | | | | Hurricane Wilma approached the state. And |
| Co. recently sold to a developer planning to | | | | some mortgage lenders required reinspections |
| turn them into condos. The sale price to the | | | | before mortgage money was released. |
| developer was $402,000 per unit. | | | | |
| | | | But in the northern parts of the state, in |
| Other types of commercial buildings also were | | | | Jacksonville, where the hurricanes were not |
| making impressive gains. The value of | | | | much of an issue, real estate agents saw a 38 |
| industrial buildings rose more than 15 | | | | percent increase in the number of homes sold. |
| percent in 2005. Space has gone from $55 a | | | | |
| square foot in 2003, to more than $70 in | | | | Median home prices continued to climb across |
| 2005. | | | | the state. In October of 2005 the median home |
| | | | price for all of Florida was $ 241,000 -- 28% |
| Two bank buildings in downtown Orlando were | | | | higher than $188,800 in October, 2004. In |
| in high demand among buyers. The AmSouth Bank | | | | October of 2000 the median price was |
| drew 47 offers and sold for $ 50.4 million. | | | | $116,100. |
| And the Wachovia Bank went for $30 million in | | | | |
| 2002 and sold for $55.35 million in 2005. | | | | For comparison sake, median prices in some |
| That represents an increase of 85 percent in | | | | other states in September were: California - |
| two years. | | | | $543,980, New York - $275,000, North Carolina |
| | | | - $208,097. This shows that Florida prices |
| **Tampa Bay area office market very hot | | | | have actually been undervalued and are now |
| | | | approaching national averages. |
| Led by very high employment growth, the Tampa | | | | |
| Bay office market is expected to be one of | | | | **Miami area experts predict 2006 real estate |
| the best performing in the entire country for | | | | trends |
| 2006. | | | | |
| | | | According to a South Florida Sun-Sentinel |
| In a Wall Street Journal article, the Tampa | | | | poll of real estate experts in the South |
| Bay area was ranked as the fourth most | | | | Florida area, real estate may cool off a bit |
| hopeful office market in the country for | | | | in 2006, but will generally remain very |
| 2006. The others on the list included New | | | | active. |
| York-Manhattan, Orange County, California, | | | | |
| and Riverside-San Bernardino, California. | | | | Richard Bass of Keller Williams Realty in |
| | | | Boca Raton expects a bit of a slowdown in the |
| The Tampa Bay area has one of the highest | | | | residential market in the first part of 2006. |
| employment growth rates in the country (3.7 | | | | "Overall, I expect prices to level off for a |
| percent), and most of these jobs are in | | | | while and then pick right back up where they |
| office-using positions. In 2005 office sales | | | | left off." Gradually rising interest rates |
| volume rose 35 percent with a median price of | | | | will have a bit of a dampening effect, but |
| $116 per square foot. | | | | they will "continue to be low enough for the |
| | | | market to expand." |
| **Jacksonville area not slowing down | | | | |
| | | | David Dweck with Re/Max Advantage Plus in |
| Real estate activity in the Jacksonville area | | | | Boca Raton thinks the lingering effects of |
| of Florida has been booming for a number of | | | | Hurricane Wilma will start to take their toll |
| years. And it shows no signs of slowing down. | | | | in 2006. He says "some homeowners and |
| According to Ray Rodriguez, a real estate | | | | investors will get clobbered by the increase |
| analyst with the Real Estate Strategy Center | | | | in taxes, insurance and potentially higher |
| of North Florida, "We're OK. We will let some | | | | interest rates." He expects it to become more |
| steam off, but the bubble here wont burst | | | | of a buyer's market "and we will return to 10 |
| anytime soon. It will slow down a little bit | | | | to 15 percent price appreciation rates." |
| and we will get back to reality. Speculative | | | | |
| buying is slowing down a little bit due to | | | | Jeff Kahn with Florida Beach Inc. of Fort |
| rising interest rates." | | | | Lauderdale agrees the market will gradually |
| | | | turn from a stong sellers' market to a more |
| New condo developments are going ahead at a | | | | balanced one. "I believe that in 2006 home |
| brisk pace, with available, affordable land | | | | prices will begin to recede. Listing prices |
| being the major deciding factor determining | | | | will become more realistic." |
| where new developments are taking place. On | | | | |
| the beach, much of the development is focused | | | | David Levin, a real estate industry |
| on "refurbishing" older buildings. Small | | | | consultant based in Delray Beach is more |
| duplexes are being bought up, torn down, and | | | | blunt: "In 2006, residential unit sales and |
| replaced by multi-floor condominiums. | | | | prices will decrease 10 percent from peak |
| | | | 2005 levels. |