“To succeed in 2012, you need to think about how trends in the national economy tie into your local market,” said Clark Toole, president and chief operations officer (COO) of Coldwell Banker Residential Real Estate Inc. in Florida. Speaking on the state’s residential market, Toole said, “Florida is such a diverse state, both geographically and culturally, that you really need to do your homework.”

Toole was one of three expert practitioners who spoke at Florida Realtors® 2012 Real Estate and Economic Forecast Conference in Orlando earlier this week.

Cynthia Shelton, 2009 president of Florida Realtors and a director at Colliers International in Orlando, discussed the commercial market, and Dean Saunders, accredited land consultant and broker-owner of Coldwell Banker Commercial Saunders Real Estate in Lakeland, covered the market for land and undeveloped property.

Toole said that key trends affecting the Florida residential market include strong demand from international buyers, a growing population – 348 people a day net growth in 2010-11 – and an upswing in employment.

Reviewing Florida’s housing market, Toole said that inventories of for-sale homes have fallen to 7.4 months on a statewide average, and just 5.4 months for listings priced under $250,000. He added that lender-owned properties (REOs or “real estate owned”) now constitute about 6 percent of inventory, but 40 percent of sales. Short sales, where the market value of the home is below the mortgage loan value, make up about 31 percent of current inventory and 18 percent of sales.

Toole added that property management and leasing will be an increasingly important segment of the market in 2012, reaching $11 billion or more, due to the large numbers of investor buyers and “dark” multifamily buildings with few owners.

Turning to the state’s commercial markets, Shelton said investors are increasingly interested in buying office, retail and industrial properties. Vacancy rates, while high, have stabilized, along with rental rates. “Core assets (essential to businesses) are selling and lenders – including the life insurance companies – are lending again,” she said.

Shelton added that lenders are getting more realistic regarding the pricing needed to dispose of their distressed commercial properties. “There are great opportunities for Realtors to find owner-users with the funds to purchase buildings they have been renting,” she said.

Looking ahead to 2012, Shelton said she expects more tenants to come into the Florida commercial markets, helping to stabilize conditions. “I think Florida has bright days ahead, as more people seek to own investment real estate in our market.”

Saunders said the state’s land market is also highly diverse, ranging from cropland, pastures and timberland to transitional and infill land located in suburban and urban locations. “Land has both an investment angle and a romantic angle,” he said. “You can own it, walk on it and enjoy it.”

Overall, Florida has about 34.7 million acres of land, with only 3 million acres now developed, he said. Local, state and federal governments own about 10 million acres.

“As real estate professionals, you have to understand how the various types of land are affected by global trends and local market conditions,” Saunders said. “For example, the price of a citrus grove is closely tied to the commodity market, and a lot of investors are now active in that sector on a national level.” However, Florida has seen a 34 percent decrease in its citrus acreage in the last six years, he added.

For the next few years, Saunders expects little demand for transitional land on the edge of the state’s cities. “There is a lot of existing commercial space that needs to be absorbed first,” he said. “There is pent-up demand for residential lots, but when that demand will be released is a big question.”

In the 2012 land market, Saunders said the biggest opportunities are likely to occur in the agricultural sector, as institutional investors purchase productive cropland to diversify their portfolios. “Take a look at alternative energy producers, as well,” he added. “They may be interested in buying acreage to support their biomass energy facilities.”

© 2011 Florida Realtors®

At the recent Florida Realtors’ 2012 Real Estate and Economic Forecast Conference, Chief Economist Dr. John Tuccillo stressed the slow but steady upward trends in Florida housing and employment, both of which have been overlooked. With prices at attractive levels, investors are back in the market and the distressed property market has stabilized. International demand has risen over the last year, adding to the positive trends in Florida real estate. Realtor panelist Clark Toole agreed, citing the increases in population and employment as positive drivers for the state’s economy.

In Florida and nationwide, restrictions on credit have slowed the real estate market’s recovery. While the average credit scores of approved loans under “normal” circumstances are around 720, in 2009 and 2010 the average was around 760. Easing credit conditions to “normal” could increase sales 15-20% higher. Dr. Lawrence Yun, NAR chief economist, shared his belief that there will be a 10% price increase in South Florida as bargain hunters and foreign buyers boost sales – taking advantage of prices that are too good to pass up.

Even experts outside the industry agree that Florida should have positive growth in 2012. While Florida employment growth has been weak and its recovery sluggish, Mark Vitner, senior economist at Wells Fargo, also had encouraging remarks on the state. He pinpointed tourism and healthcare as leaders in the employment recovery. International visitors to Florida’s many vacation destinations have boosted tourism, while concurrently stepping up as investors in the state’s housing market. Vitner indicated specific areas in the state where prices have bottomed-out and employment has turned around.

The Florida recovery is a marathon, not a sprint. Although the pace is frustrating at times, this slow and steady improvement is good for Florida. The state is moving in the right direction. Realtors can encourage positive thinking about the real estate market with their clients and back up their case with the facts. The national consumer sentiment number of 67.7 beat last month’s 64.1 and the analysts’ forecast, showcasing that consumers’ attitudes are brighter across the U.S. Consumer sentiment has improved each of the last four months. As perceptions shift to better match reality, sales and your business should change for the better.

– Erica Cross, research analyst, Florida Realtors

The city sponsored web site is called BillionDollarBeach.com and appears to be current with the condo, development, and beautification projects underway on Clearwater Beach. The City of Clearwater is planning to be one of world’s most desirable tourist destinations. According to the site, there is more than a billion dollars of investment flowing into the Beach area.

In our opinion, Clearwater, Florida has always been one of the worlds most desirable tourist destinations. The new and “improved” will be more desirable to some and less desirable to others. Only time will tell how Clearwater Beach will end up. We will be watching closely.

Thanks to John Jacobsen for the awesome photo!

Clearwater, Florida is a progressive city that is committed to enhancing residents’ lives while preserving a heritage that is rich in culture and exquisite in landscape. Here you’ll find everything you could expect from a tropical paradise – and much more. Literally translated “Clear Water” from the native Indian “Pocotopaug”, the area was named for its abundant fresh springs along the shore. Settled by colonists in the mid-1830s, it was not until the 1890s that Clearwater gained a reputation as a resort community.

Today, fun ‘n sun lovers still come from around the world, and although Clearwater is a great spot to get away, it’s an even better place to live. The Clearwater community is friendly and socially responsive, and the city government is economically active and environmentally conscious. The city provides citizens with the programs and resources they need, and the amenities they desire.

Clearwater is the county seat of Pinellas County and is located on the highest coastal bluff in Florida. According to the U.S. Census Bureau, the population of Clearwater is over 108,000 residents.

Two major airports are conveniently nearby: Tampa International Airport and St. Petersburg/Clearwater International Airport. The downtown area is the gateway to the beautiful Clearwater beaches.