Increasing demand for Florida Property – Miami Leads

The recovery in the Florida property market looks set to continue with Miami leading the way. Sales of family homes rose by 18% in the Miami metropolitan area during December 2010 when compared to December 2009 which is considerably higher than the rest of the state where sales increased by 4%, although certain areas experienced surges in sales. Florida was one of the worst hit states in the recent economic downturn and could be expected to be one of the first to show improvements as people take advantage of the affordability of property in this popular state.

The US economy as a whole seems to be improving as consumer spending rose again during December, increasing by 0.7% which followed a rise of 0.3% the previous month. Another report has shown businesses expanding at their fastest rate for two decades. Incomes this year are expected to rise while payroll taxes will be cut which will further drive consumer demand.

During December the Obama administration agreed to extend Bush-era tax cuts and also to reduce payroll taxes by two percentage points in their bid to rejuvenate the economy through consumer spending. There are also signs that the employment market is improving which is expected to lead to lower numbers defaulting on mortgage loans and less repossessions. This is good news for the housing market as house repossessions depress property prices. The economy grew at 3.2% during the last quarter of 2010 while inflationary pressures are contained allowing quantitative easing to continue. Inflation increased by just 0.7% from December 2009 which is the smallest increase since records began and well within the Central Bank’s long-term goal which is 1.6% to 2%.