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DOWNTURN IN TOURISM ELSEWHERE

By
Real Estate Broker/Owner with St.Cloud Homes

Orlando- The Wizzarding World of Harry Potter may be casting a magic spell over tourists in Orlando, however it is more of curse it seems up North as the tours seem to have disappeared. Quite an unimaginable concept in the White Mountains this year as vacancy signs appear to be popping up mid summer, something not seen in decade and a half. 

Comparably homes values remain high in contrast to Florida where they are bleakly low, despite the fact that tourism in Florida has set record attendance at Universal Studios.  "It has been a wild ride" said one Florida Realtor pertaining to the record number of distressed properties in the wake of the housing market collapse.   Writing multiple offers to achieve one sale is more the norm these days most Real Estate professionals will concede. On average the ratio seems to be 3:1. 

While unemplyment certainly has crimpled the Housing Market Recovery, some people blame the failure of Congress to extend the Tax Credit for first time homebuyers beyond the April 30, 2010 deadline. Although the recent passage  of antension to allow those contracts written on or before sufficient time to close (September 30, 2010) will have little impact for buyers looking today.

H&R Block tax preparers had said during the tax preparation that there was a substantial increase in the number of taxpayers utilizing the credit on their returns.  Looking at the overall housing market prices in my area of St. Cloud/Kissimmee Florida certainly prices here are more attractive today than they were just one year ago.

ECONOMIC PRESSURE ON TWO FRONTS

Perhaps what has "changed " the most, is pre-retirement aged people are holding off their purchases of retirement homes in fact many are reportedly selling their second homes to consolidate expenses.  Significant drops in investments and stock losses compounded year over year have forced the baby boomers to remain in work force longer. Lack of job creation, has them concerned their retirement savings are not sufficient enough to sustain any long term holdings and increases in utility and insurance costs are also contributing factors.  When times were good, people had more disposable income,  In these tumultuous times few do now. 

Perhaps in light of the empty nest not staying that way for very long is another contributory factor. The twenty something age adult children seem to be moving back home under economic pressure. This compounded with rising unemployment has made the decision of furthering their education beyond the bachelors degree level an alternative to becoming a statistic of unemployment. At least until the economic condition shows some sign of improving.

 This is evident in the lack of tourism in other parts of the country as well. Where the summer season is limited to about 9 weeks duration and vacancy signs illuminate the economy's warning light indicating certainly is not what it once was.  Globally the impact seems to be universal.  Perhaps Harry Potter can conjure up a cure for the recession and allow the rest of the "Muggles" to benefit in the process.

 

Posted by

St.Cloud Homes

Allison Stewart Broker, SFR, CDPE 

407-616-9904www.kissimmee-stcloudflhomes.com

                                                                                                       

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Comments (1)

Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

Major cities seem to be fairing slightly better than the destination locations.  Also an increase in senior workforce was noticable at least in New England- how has tourism been affected in your area?

Jul 17, 2010 01:25 AM