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U.S. & Florida Economic Update Boca Raton, FL September 23 rd , 2014. U.S. Forecast. Economic Policy Uncertainty Still Weighs on the Economy Health Care Reform Impact on labor market Delayed mandates Dodd-Frank Financial Regulatory Reform Impact on credit flows & financial sector
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U.S. & Florida Economic Update Boca Raton, FL September 23rd, 2014
U.S. Forecast Economic Policy Uncertainty Still Weighs on the Economy Health Care Reform Impact on labor market Delayed mandates Dodd-Frank Financial Regulatory Reform Impact on credit flows & financial sector 45.4% (127) Fiscal Policy Monetary Policy
U.S. Forecast The economic impact of economic policy uncertainty Statistical analysis shows that higher policy uncertainty causes: Lower private investment Lower industrial production Much lower employment
U.S. Forecast • Jobs Shortfall
U.S. Forecast Unemployment if “missing workers” were found
U.S. Forecast Sky Mall™ Policy: An Expensive Policy that Fails to Achieve its Desired Outcome
U.S. Forecast Sky Mall™ Policies: T.A.R.P. Foreclosure Prevention Act 2009 ARRA of 2009 Affordable Care Act Dodd-Frank
U.S. Forecast Lost housing wealth Weak labor market recovery Both have weighed on consumers “Mini age of austerity”
U.S. Household Wealth (Trillions of $)
FloridaHousing Market Housing market recovery continues Double-digit price appreciation has slowed Still high level of investor activity Housing finance still an issue
Florida Housing Market Investors are still active in Florida residential real estate Evidenced by high share of cash transactions Private equity, hedge funds international buyers
Housing MarketCash Sales • Why are investors so active in Florida residential real estate?
Housing Market Housing Finance Still high proportion of cash sales Mortgage availability has been restricted by Dodd Frank Capital Standards Underwriting Standards Limited Private Securitization Demise of Mortgage Brokering Shell shock
Thank you • Sean M. Snaith, Ph.D. • Director • Institute for Economic Competitiveness • (407) 823-1453 • Sean@SeanSnaith.com • WWW.IEC.UCF.EDU • www.facebook.com/seansnaith • Twitter: @seansnaith