News Releases

Florida Economy Continues Modestly Paced Recovery-BMO Economics Reports

• Unemployment Rate Fell Nearly 2 Percent in 2012
• Housing Supply Overhang Easing
• Homebuilding Has Stabilized

SARASOTA, (March 5, 2013) – The Florida economy continues to recover at a modest pace, with lower inventories, firming construction and upward price momentum suggesting that the worst days of the housing crash are b ehind. Real GDP will likely grow 1.9 percent this year, expanding to 2.6 percent in 2014, according to the State Monitor Report by BMO Capital Markets Economics.

Employment continues to inch forward in Florida, with nonfarm payrolls up .8 percent y/y in December. The unemployment rate, at 8 percent, remains a shade above the national average of 7.9 percent, but has fallen an impressive 1.9 percent in the past year.

The housing market continues to stabilize. According to the S&P Case-Shiller Index, prices in Miami and Tampa have bounced about 10 percent from their lows in 2010. The uptick in price is being driven by a significant drawdown in the months’ supply of homes available for sale. The 8.3 months’ supply in Miami in Q3 compares to more than 60 at the depths of the downturn, while Tampa now has just a 3.8 months’ worth of supply.

“We are starting to see some good momentum in housing as inquiries for new mortgages continues to increase,” said BMO Harris Bank Florida President, Dave Maraman. “While there is still room for further improvement, the trends we are seeing in housing is encouraging which bolsters the larger economy.”

Homebuilding has stabilized with 62,500 housing units started in 2012. That’s an increase from 35,600 at the low in 2009, but still far less than the 275,000 peak at the height of the 2005 bubble.

The full State Monitor report can be downloaded at www.bmocm.com/economics.

About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and s ervices provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank^SM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.