Lack of Buyer Optimism Wounds Florida Housing Market

Throughout the fall, “Floridians’ consumer confidence remained at a 12-year low,” due to rising gas prices and interest rates. The consumer confidence index has remained around 78 since September, registering a statewide squeeze on spending that will likely affect the Florida housing market.

“Hurricanes Katrina and Rita has little effect on Floridians’ feelings about the economy,” spending and the Florida housing market. Confidence started to drag statewide before Katrina hit, caused by high energy costs and fluctuating interest rates.

Lack of buyer optimism and restrained spending, along with steadily increasing interest rates, will probably let some of the air out of the Florida housing bubble. And even though so many people have been using Florida housing as an investment strategy, people will now be “less likely to fund spending with home equity loans.”