In Southeast Florida, Consumer Confidence, Real Estate Optimism Rise

The Florida home loan market and overall economy? It’s not perfect - but signs of optimism are everywhere throughout the southeast region of the state.

The latest findings of the RBC Southeastern CASH (Consumer Attitudes and Spending by Household) Index shows a 25-point increase in consumer confidence between January and June 2006 to 99.5 out of a baseline of 100 points established in 2002.

At least part of the reason behind this improvement is the increased visibility and attraction of cities such a Hollywood, where more and more owners are turning for their Florida home loans.

RBC economist Ivana Rupcic says the economic outlook in the Southeast during the first six months of 2006 is very similar to where it was in 2005, before Hurricane Katrina hit.

“We have seen encouraging increases in consumer confidence across the nation, and the Southeast has outpaced the rest of the country,” says Rupcic. “But there are still real concerns about the present and future of the economy.”

The index’s other findings included:

- Twenty-eight percent of Southeastern respondents rate their current local economy as strong, compared with 22 percent nationally feel the same way. Things will only grow brighter is property tax reform is passed in the Fort Lauderdale housing market.

- Southeasterners are slightly more inclined to think positively about the real estate market, with 45 percent believing it is a good time to apply for a Florida home loan, compared with 41 percent feeling the same way nationally.

The RBC CASH Index is a composite measure of national consumer attitudes toward the state of local economies, personal financial situations, savings and investment, and job security. As recent report cards suggest, it’s apparent Florida real estate is in for a soft landing and prosperous future.