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Construction Spending in Florida Is Finally in a Tiny Rebound

Construction firms are beginning to work again in Florida.
Florida's housing market was affected by the spending freeze, but it seems that construction has seen its rock bottom and is currently rebounding.
According to the Florida Office of Economic and Demographic Research, taxable Miami real estate sales have been increasing for four straight months, with November recording the largest amount of money spent on construction in Broward.
This puts Broward and Miami-Dade on equal footing when it comes to spending on Miami homes; Miami-Dade has seen an increase in its construction spending since the end of 2010.
Bernie Navarro, head of the Latin Builders Association recently stated that more custom Miami homes are being built this year than in the recent past.
Everywhere from Key Biscayne to Coral Gables to Pinecrest has seen more homes being built, according to Navarro.
Construction had stopped completely in these very wealthy areas but is now on the rise again.
The fact that Florida s housing market appears to be recovering brings some people to the conclusion that Florida is about to experience a faster recovery.
Although construction workers continue to lose their jobs, the pace of job loss in this area is slowing.
Currently, Miami-Dade is seeing more job losses in the financial sector than in construction.
An economist at the University of Florida, David Denslow predicted six months ago that construction would be in a much more negative place than it is right now.
According to Denslow, everyone was concerned that there would be a double dip six months ago.
It seems that the current trend is taking Miami real estate in the opposite direction.
Specifically, Broward saw an increase in taxable sales of five percent with an increase of nine percent in Miami-Dade above the year before, a trend that persisted throughout the year 2011.
As people study the taxable sales reports, they can see where the bottom occurred and where spending began to take off in the other direction.
All types of spending appear to be on the rise, including everyday spending, hotel spending, spending at liquor stores and spending at restaurants.
What seem to be left out of the current recovery are big ticket items, such as appliances and cars.
These higher priced items are 30 percent lower than the highs set just before the beginning of the recession in December of 2007.
Big-ticket items, such as housing appliances were directly related to the housing purchases people were making right before the recession hit.
The ease with which people could obtain a second mortgage made it possible for people to buy new cars.
Also, Miami Beach condos in over-heated buildings encouraged homeowners to purchase dishwashers and washing machines, according to EDR analyst, James Lacrosse.
Lacrosse reminisces that those were the good days, but he also acknowledges that it would have been impossible for them to continue.
The taxable sales information shows that there is improvement in the area of real estate.
Even the taxable sales of the automotive industry are higher than they were in 2009 when it reached its bottom.
In Broward, taxable sales for the automotive industry are up 11 percent and in Miami-Dade, they are up 16 percent.
With several foreclosures at their lowest prices, it's a little harder for builders of new homes to compete.
Even so, Latin Builders Association's Navarro is feeling good about the future.


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