Builder confidence levels are going back up and, according to a survey conducted by Wells Fargo and the National Association of Home Builders, the levels are back up to where they were in February of 2007 for Miami oceanfront condos. In some areas of the nation, the improvements have not been so pronounced and, in others, there has been a decline in builder confidence but, overall, builders seem to be more optimistic about the future of their business.
The builders were asked about their confidence in new single-family homes. The survey revealed that 37% of the builders had confidence in these properties, a level comparable to where it was in February of 2007. It also represents a climb of two percentage points compared to where confidence was last month.
Sales expectations were also up, coming in at 44%. There were overall gains in the housing market over the last month, which experts believe is contributing to the increased confidence that builders have in their homes.
The most significant gains in builder confidence were observed in the Midwest and the South. Other areas of the nation were not so optimistic, however. In the West, builder confidence dropped 3 points. In the North, builder confidence was down 9 points. Overall, however, builders seem to see a brighter future for new properties.
Despite the improvements, however, confidence among builders still remains negative. In the survey, a score of over 50% means that builders are confident overall. Below that and their confidence still isn’t in the territory that it would be in during the healthiest markets for new homes.
The economy is not fully recovered yet, but the worst of the real estate issues that dominated headlines and people’s minds not too long ago seems to be in the past. Builders are showing more confidence that new homes will find buyers and, of course, that means that they are more likely to invest in constructing new homes.
The improvements come after July’s very impressive numbers from the same survey. In July, builder confidence went up a full 6 points, which was the most significant climb in over 10 years. While some areas of the nation may still be experiencing the kind of uncertainty that makes builders hesitate, the optimistic outlook in other pulls the overall confidence up and may indicate that builders will be looking to erect new properties at a quicker rate in the near future.
Buying New Homes
There are many new homes in Miami
and in other parts of Floridian market and there are still great deals on already-standing homes, due to the buyer’s market. Builders in the South Florida are among those who showed improved confidence in the market and, to be sure, Miami real estate market had improved dramatically over the past few years. Looking for a new home waterfront home in Miami may include more choices, going by the builders showing increased confidence and it may be a good time to take a look at what’s out there and what’s coming on the market soon in areas where builders are putting up new homes.