More and more people are taking out building permits for new construction homes, according to a recent Bloomberg article I was readying!
Evidently, in October, building permits across the nation climbed to the highest level in more than five years!
This is an incredible milestone for the national housing market and also one that’s being mimicked here in Sarasota.
Continue readying to discover why this recent activity is expected to bolster the local housing market.
Home Builder Confidence Expected to Boost General Housing Market
The recent Bloomberg article I was reading had a lot of good news to share with residents:
- Applications for new construction increased 6.2 % to a 1.03 million annualized rate – the highest it has been since June 2008.
- Data suggests that multifamily units will have the highest proportion of homebuilding in coming months.
- The Standard & Poor’s 500 Index has increased 0.1% to 1,805.08 recently while the Supercomposite Homebuilding index climbed 3.6%.
- The median estimate by economists was for a 930,000 rate in permits with projections ranging from 875,000 to 985,000.
- The S&P/Case-Shiller national home-price gauge increased 11.2% in the 3rd quarter from the same period in 2012, which is the biggest year-over-year increase since the first 3 months of 2006.
- S&P/Case-Shiller’s index of property prices in 20 cities increased 13.3% in September year-over-year.
- Higher home values are attributing to gains in American’s net worth.
- The Commerce Department reported that permits for multifamily units increased 15.3% in October to a 414,000 pace, which is the most since June 2008.
- Single-family building permits increased 0.8% last month to a rate of 620,000.
- Two of four regions had an increase in building permits in October. Those regions are the West (which jumped 15.4%) and the South (which includes Florida).
- The average rate for a 30-year, fixed-rate mortgage was 4.22% in the week ending on November 21st, which is down from a recent peak of 4.58% on August 22nd.
3 Reasons Why Homebuilders Are Optimistic About Sarasota, National Real Estate Markets
Recent, I was reading a related article that said The National Association of Home Builders is expecting housing to strengthen in 2014, especially in the new homes market. Evidently, this association has concluded, from studying months of real estate data, that the market is on an upswing.
According to the article, experts with The National Associated of Home Builders believe that the market has all that it will need to see a decent and fairly strong recovery in 2014 as well as 2015. This declaration was made during the Fall 2013 Construction Forecast webinar.
Here are three reasons why members with this association said they were feeling optimistic and hopeful about the housing market:
- There has been a double-digit increase in home prices during the last year, which has helped spur a housing rebound.
- More permits are being taken out for new construction projects.
- Home builders across the board are seeing more request for projects.
Finally, here are some predictions the association made in relation to housing starts:
- Housing starts in 2013 are projected to reach 924,000 – up 18% from last year.
- Single-family housing starts are expected to rise 17% this year and an additional 31% next year. NAHB projects that single-family production will surpass 1 million in 2015.
- Multifamily starts are expected to rise 20% in 2013 and another 10 % in 2014.
Your Dedicated Sarasota Florida REALTOR®
As you can see, there are plenty of reasons to celebrate housing market activity! And experts believe that momentum off the housing market is going to continue to build on itself.
By the way, if you are thinking about entering the market anytime soon as a Sarasota home buyer or home seller, please don’t hesitate to contact me, Dennis Kotaska, today! I’ll be happy to assist you by providing valuable advice and useful resources!
Have a great day!
Dennis