Florida Real Estate, Gas Prices Concerns Lower Consumer Confidence

Florida home prices are rising. Rental costs are following the same trajectory. Add in the price of gas these days and there’s little wonder why consumer confidence in the Sunshine State dipped this month.

Individuals are less confident about their financial future, along with the health of the economy in general, than they were this time last year, according to an index produced by the University of Florida’s Bureau of Economic and Business Research.

Despite the views some experts that there is actually NO Florida home loan bubble, confidence levels are decreasing, based on this report. They varied widely depending on household income.

For households earnings less than $30,000 a year - those possibly in the market for an FHA Florida mortgage loan - their view of how their personal financial situation compares to a year ago dropped sharply, by 13 points to a low 48. Households making more than $30,000 expressed much more confidence in their personal financial situation versus a year ago, by two percentage points to 104.

Overall, Florida’s consumer confidence level of 86 represents a decline of nine percentage points from January. Researchers at UF don’t expect much improvement.

”Moving ahead, we expect consumer confidence to remain at this level and perhaps decline further,” survey director Chris McCarty said in a statement. “Gas prices will remain high over the summer, and the real estate market will continue to decline as interest rates rise and inventories build [particularly of condos].”

Are these individuals right to fret? Reports vary. In some Florida markets, the outlook is looking more positive, as houses are selling and Florida home loans are affordable.