While the housing market has suffered a serious decline in recent years, statistics indicate that Miami real estate market as well as in Florida is rebounding beautifully. Home building has been stagnant in Miami, with builders showing fewer projects than in the past. U.S. homebuilders have recently cut back on apartment building to focus more on building residential single-family homes and condos. More permits were purchased for future projects in March than in the last 3 and ½ years. This has given Floridians a better perspective on the recovery of the housing market, as these and other figures indicate a growing interest in home buying, but not necessarily home building.
While the Commerce Department has released data that indicates that home building in US is down 5.8% from February, home buying prices seem to be on the rise with inventory on the decline. Apartment building fell nearly 20% in February, while building of single-family homes remained mostly unchanged. The promising figure for realtors and builders is the number of future permits that have been signed. This indicates that people will be taking part in more home building in the future, and the figures have risen 4.5%, the highest percentage increase since 2008.
The propensity of people to build a home in the future indicates that the recovery is well under way, and as Jonathan Basile of Credit Suisse notes, this is a ‘good sign for broader economic activity.’ Other economists disagree stating that the construction figures indicate that the economy is still depressed and has not reached a full recovery period yet. Many economists believe that the economy has a long way to go before it will be back to its full potential.
Builders have been growing more confident in the economy, as the increase in permits has given them the propensity to see that this industry will be growing in the future and that more homebuyers are interested in building than they have been in the last 3 years. Other factors that have contributed to the increase in confidence in builders have been their ability to work throughout the mild winter and the improving job market.
January and February had great sales for Miami homes that have been previously occupied. With a new influx of jobs and a recovery underway, home buyers and home builders are now able to become more involved with building their own home instead of purchasing a home that is already on the market.