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Florida's Construction Industry is on Life Support, Says JBREC


(News Source: John Burns Real Estate Consultants)

(ORLANDO, FL) -- According to John Burns Real Estate Consultants, Florida's construction market has virtually shut down.

In a prepared report released today they state; We have been valuing properties throughout the state all year and, while we are seeing some modest improvement in sales velocity, there is virtually no new construction. Year-to-date through May, the state has recorded just 9,741 single-family permits - a 49% decline from the year-ago period. We project 16,900 single-family permits in 2009, which will be a decline of 91% from the peak in 2005.

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The rolling 12-month total of permits continues to decline. When the line starts to flatten, construction will have bottomed out.

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While the story is grim for Florida real estate owners, the story is fantastic for potential home buyers. The payment on many brand-new homes is now less than $1,000 per month, the FHA is still offering low down payment programs, and the government is offering an $8,000 tax credit to home buyers. Consumers may never see payments this affordable again, and the word is getting out among renters. A surging group of renters moving into homeownership is exactly what is needed to stabilize Florida's housing market, and eventually kick-start construction again.



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