Is there hope for development and construction companies in the future?
Some of the positive news is not usually reported. For example, reductions in housing inventory are being reported in certain industry sectors of Florida. If this trend continues, some developers may resume building in a year or two from now. Real estate is a cyclical industry affected by both local and national economic conditions, such as growth in population, employment, consumer spending and interest rates. Presently, as reported, the level of consumer spending and confidence is reaching low levels. The housing industry, as well as other markets, will begin to turn around as long as consumer confidence is restored. SONIA OLARTE is Senior Vice President and Manager of Construction and Real Estate for Banco Popular. Reach her at (786) 953-1238 or solarte@bpop.com.
