• Land Prices down 25% to 40% depending upon location and entitlements.
  • Entitlements more costly, intricate, time consuming, and expensive with sky rocketing impact fees.
  • Water availability is emerging as a major issue, which will become more critical as the Bureau of Water Management imposes tough restrictions on consumption and preservation of this precious resource.
  • Bank loan and builder inventory liquidations through 2008! Investors, builders, and banks dumping excess inventory, or renting homes and condominiums below market. Auctions are becoming more prevalent.
  • New Home Sales Absorption Down 40% to 50% from the ridiculous sub-prime investor craze level, but only 10% to 25% from previous 2002-2003 sensible and sustainable levels.
  • Home values down at least 30% on average, but they were never worth the artificial 2004-2005 pricing in the sub-prime mortgage market. Home prices are settling back to normal pre-2004 pricing, but are near impossible to sell due to the extreme residential over supply.
  • Population Growth Down from 2% with the exception of the hot spots that are still reaching 4% or more growth annually.
  • Orlando and the Tourism Sector still performing well with record profits at Disney in 2007. Time-share sales are also at record levels.
  • Construction costs down 5% to 10%, mostly labor and overhead reductions but some minor material price reductions as well (except on petroleum related products).
  • Florida has become more expensive "across the board"... This trend will continue, but so will job growth and a net inflow of domestic and international population growth, creating a solid demand for new rental housing now, and "for sale" housing once the over supply is absorbed.
  • The best investment opportunities will be with fully entitled projects under strong sponsorship in well planned communities with affordable rental and "for sale" product and with an exceptional level of customer service.
  • Bank and Financial Institution Workouts: Some of these assets will also offer good returns if the price and timing are right, and if the projects were initially well conceived.