20% of the housing market is comprised of new homes. With every new home built, 3 jobs are created and it is estimated that $90,000 is brought in in revenue according to the National Association of Home Builders. For this reason the builder sentiment index is a powerful, yet early, indicator of housing recovery. Builder sentiment was at its highest, 50, in April 2006, which was the peak of the housing boom. The best sales levels were reported in April 2007 by builders. It has just been announced that in June the best sales were reported since April 2007 of new homes.
The six month sales outlook remains the same since May findings, however the Builder Sentiment Index has risen to 29, the highest in 5 years. In the past 7 of 9 months the Builder Sentiment Index has risen, and with the reports of the highest sales in June, builders are optimistic about the housing recovery market. Consumers are continuing to buy new homes and pre-owned homes at steady sales levels. This may be the result of the slowing jobelessness rate, low mortgage rates, and tax incentives for first time home buyers. This is incredible news for the real estate market and Miami in particular. We have seen recent ground breakings for new buildings such as My Brickell and Mansions at Acqualina, and will likely continue to see more condominium projects crop up in the future. For more information on new developments and for the latest news, contact us today!