Florida’s Economy is Looking Up!
Florida is different than most other US sates. It is the most traveled to vacation destination in the world. Great vacations cause many to move to Florida to live try to live like they are on vacation everyday. Because of that draw, Florida is known as a high growth state. When lots of people are moving to the state, the economy in Florida enjoys far better growth than the rest of the US. The downside is during recessions when that growth doesn’t happen, the economy can be far worst that the rest of the US.
When the “great recession” took place, Florida was the poster state for foreclosures. Home prices dropped 60%. Unemployment was at times the worst in the US. It was ugly. Well, that is all ending. Foreclosures are down. Home prices are up. Inventory for sale in down. Manufacturing is up. Tourism is back in a big way. Unemployment has dropped from the worst heights to now being about on par with the US average. If history repeats itself again as it always has in the past, things are shaping up in Florida for the next boom.
Sure the financial cliff issue could make things a little bumpy, but that will happen everywhere. The point is that the worst is over for the Sunshine State and with 10,000 people a day retiring now, yet another boom is coming. Whether it will be obvious in 2013 or latter doesn’t matter, because it’s on the way.
Why does this matter? Well if you get in before, or at the beginning of any boom, you stand to gain. Thinking of buying a home in FL? Now would be a great time. Thinking of starting a business or investing in FL? Now would be a great time because the price you’ll pay is a pre-boom price. The start of Florida booms is recognized by very few people, but sizable gains can be made by getting in at the right time. Now is the right time, purely from a financial perspective. Whether you will actually like living in FL long term is another story.
Most Florida booms last for years and there is no reason to expect this next one will be any different. Once a boom is under way most people don’t pay much attention to it. After the numbers get so impressive and everyone knows it because it’s all over the national press, that’s the time to cash out quickly. When everyone “knows” that Florida real estate and business is the place to be, the bust is just around the corner. Equity is nothing until you sell and turn it into cash.