West Florida Housing Market Slows, But Region Grows

The University of West Florida has identified low wages as one major factor in the local housing market slump.

Florida mortgage rates creeping higher is another.

Rick Harper, director of UWF’s Haas Center for Business Research and Economic Development, spoke about the housing market and other issues at the Navarre Beach Area Chamber of Commerce’s monthly breakfast.

Harper predicted the housing slump would not pick up until Florida home loan costs are lowered.

He also blamed a disparity between the increase in home values and wage hikes.

“Average home prices have risen by 96 percent over the last five years in Florida,” Harper said.

“Average wages have risen by only a quarter of that. Over time, wages will have to rise in order to induce people to locate here. Otherwise, they won’t be able to buy homes.”

“Housing activity this year and next is on weak footing, nationally and particularly in Florida,” he added. “It’s clear that the market dynamic has changed and the units that are selling are less expensive ones that people will be living in full time or use as rental properties.”

Despite the slowdown, Harper said the Haas Center predicts that the West Florida housing market will continue to grow.

Okaloosa County’s per capita personal income will hit the national average within five years, while the Panama City housing market is calculated to have 15,000 more condominiums by 2010.

Traditionally, each new condo generates enough spending to create one new job, Harper said. “Navarre is poised for the same type of growth.”

SOURCE: EmeraldCoast.com