According to the most recent survey by the University of Florida and an article by Florida Realtors, Florida consumer confidence increased in September. The survey found consumer sentiment went up 2.8 points. Four components of the survey increased and one remained unchanged. Perception of personal finance increased. So did opinion on if now is a good time to buy a big-ticket item.
“The latter increase is mainly driven by the population aged 60 and over; but, in general, Floridians expressed more positive views compared with last month’s index score,” says Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research.
Expectations of US economic conditions over the next year remained unchanged, but expectations of US economic conditions over the next five years increased. These positive feelings are probably coming because of Florida’s strong job market. Florida unemployment is at its lowest level since the recession. However, people are questioning the quality of jobs being added.
“Despite these positive trends in the labor market, labor force participation is decreasing, and there is evidence of an underlying change in the employment structure, with more Floridians in lower-paying jobs compared with pre-recession levels,” Sandoval says. “Adding more low-wage and low-skill jobs does not directly translate into a higher standard of living for Florida workers.”
The upcoming election is probably also affecting Florida consumer confidence.
“It’s not unusual to see politics creep into the consumer sentiment index during a presidential election, particularly in the expectations of U.S. economic conditions,” explains Bureau Director Chris McCarty. “The contrast between the candidates’ approach to the economy is as stark a contrast as any election in recent memory. While the polls show a tight race, this (uptick in future economic expectations) may ultimately bode well for Clinton in Florida.”
High consumer sentiment in the Sunshine State is a great indicator of a healthy real estate market, too. If you are among the Floridians who believe now is a good time to buy a big-ticket item, like a home, look no further than RE/MAX Paradise. Check out our amazing Miami properties today!