Compared to February 2015, developers in South Florida signed fewer construction contractors. This is the result of a drop-off in residential building.
According to a report from Dodge Data and Analytics, there was $405 million new residential contracts during the month of February, which represents a reduction of 60 percent from the $1.016 billion that were signed in the same month of 2015.
However, non-residential contracts were up by 17 percent during the same period of time. The construction spending totals from everything from churches to government offices reached about $289 million during November, which was up by $246 million from the previous year. The construction contracts that were signed in the month of November 2015 was $694 million, which is down by 45 percent from the $1.26 billion that was seen in November 2014.
The Beginning of the Decline
This falling trend started in October 2015, which was the month when here were also a number of significant cuts in residential building contracts. However, even with the reduction, the spending totals are still considered to be on track for outpacing 2015. Approximately $8.9 billion is being spent on building from the period of January to November, which is a growth of two percent compared to the $8.7 billion that was spent in the same months during 2015.
November also marked another month of increasing home prices in Miami Dade County – click here to see Miami homes for sale as well as sold history. This includes information in regards to sales for both distressed and non-distressed properties. What was discovered was that the prices had increased by 7.6 percent from 2014 to 2015, which was considered a substantial jump, even though the appreciating prices have begun to slow down recently.
From the months of October to November the home prices only increased by 0.5 percent, which means they remained steady.
There are a number of factors that impacted this, which included a strong demand, as well as a tight supply in a number of markets. These are all factors that have begun to contribute to the long running increase in prices and home equity, which is ideal for homeowners. However, on the flip side, the prices have outstripped some incomes for a number of years in several regions. This means in 2016, affordability is a more important factor in regards to home sales in some markets.
The overall home prices in the state of Florida, in its entirety, have actually outpaced the Miami-Dade area, which is where the most expensive homes in the state can be found. Florida witnesses an increase of 7.9 percent in the price of homes year-over-year.
Across the nation, home prices saw a similar amount of growth – the cost of homes in the U.S. rose by 6.3 percent year over year in November, and a total of 0.5 percent from the period of October to November.