54 | FLORIDA WORDS | Amit Katwala
SNAPSHOT
www.opp.org.uk |MARCH 2011
Despite the fact that house prices have fallen like a stone in “The Sunshine State” in the past two years, all the fundamentals remain strong. Here are the facts and fi gures.
F
lorida has been a popular tourist destination for more than a century, with beaches
and theme parks attracting a variety of visitors, including older couples looking for somewhere to retire to, and young families seeking to entertain their children. Miami offers something completely
different, a metropolitan city that has more in common with South America than the South of America, and the wildlife of the Everglades also attracts nature lovers. In keeping with this issues theme of
distressed markets, this month’s market snapshot takes a look at the property market in the “Sunshine State”, giving you all the facts, fi gures and graphs you need…
Property Prices The average house price has fallen dramatically recently. According to the Florida House Price Index,
Top International Markets by Number of Visitors (2008)
Canada 2.9 million United Kingdom 1.4 million South America 1.1 million Germany 294,000 Australia 69,000 Japan 55,000
prices reached an all-time high in the 4th quarter of 2006. In the latest figures, for Q2 2010, it was down 35.2% on this, losing 11.72% in the last 12 months. House prices doubled in the last 30
years, but have now been in decline for the last five consecutive quarters. In some areas, these low prices are attracting buyers. Sales volumes
“House prices doubled in the last 30 years, but have now declined for the last fi ve consecutive quarters”
in Miami rose by 26% year-on-year last quarter, according to the Miami Association of Realtors. Inventory levels for homes in the
Orlando, Florida, area have hit a 5-year low as prices start to rise. “The housing statistic pages from
the Orlando Realtors Association show that property prices are rising again,” Colin Murphy, a director of distressed property specialist Torcana, told OPP. “For example, in January 2009 the average sales price was $190,243
Average Prices by Location
Orlando - $149,000 Cape Coral - $207,900 Jacksonville - $174,999 Miami - $187,000 Tampa - $144,400
(£117,878) which fell to $159,942 (£99,127) in December 2009.” “In contrast, the average sales
price in January 2010 was $140,422 (£87,029) with the average sales price in December 2010 being $146,582 (£90,831). “The average sales figures for
2008, 2009 and 2010 clearly show prices decreasing very fast in 2008 and 2009 but holding extremely steady in 2010.” Murphy believes that “the real
estate market in Florida was very healthy based on firm fundamentals prior to the world monetary recession ... on things such as quality of life, lots of space, good schools, employment opportunities, a world class financial and tourism sector plus sunshine … and they all still remain.” Visitor Numbers An estimated 18.9 million people visited Florida in the third quarter of 2010, according to fi gures released by Visit Florida, the state’s tourism board. This is an increase of 0.6% on the same quarter of 2009. The number of visitors fell in
2008, and then again in 2009 to 80.9 million. They seem to be on the up in 2010, with the first three quarters all showing an increase on last year. There was an increase of 17.4% in overseas visitors to Florida, with a particular increase in Canadian visitors (up 23%). There was a slight fall in domestic
visits however, which were down by 1.6% on the third quarter of 2009. Canada is the most popular source of international visitors, with the UK a
distant second. And total flights to and from Florida’s 14 major airports rose by 3.8 percent, the Average Daily Room Rate rose by 1.2 percent, monthly hotel occupancy rates were up 5.1 percent and there was a 0.8% increase in Florida’s tourism-related employment when compared to the same period of 2009. Domestic Visitors (2008)
• Florida’s domestic visitors said their primary reason for coming to the Sunshine State was for leisure (82.5%). • The major type of lodging used by domestic visitors was hotel/motel/B&B (46.0%). • The average length of stay for domestic visitors to Florida was 5.1 nights.
“Canada is the most popular source of international visitors to Florida, with the United Kingdom a distant second”
Domestic air visitors surveyed stayed an average of 5.1 nights, while auto visitors stayed an average of 5.0 nights. • The top activities domestic visitors enjoyed while in Florida were beaches, shopping, touring/sightseeing and going to a theme/amusement park. Overseas Visitors (2008) • The primary trip purpose for overseas visitors was leisure/recreation/holiday (64.3%). • The major type of lodging used by overseas visitors was hotel/motel (72.1%). • The average length of stay for overseas visitors to Florida was 11.2 nights, with a median of nine nights.
Market Snapshot Florida
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