The National Association of Homebuilders announced that the Housing Market Index rose to 57 in June from 51 in May. To give you an idea of what a healthy market entails, any indice above 50 is considered a positive outlook. This is the third consecutive month of gains in homebuilder confidence and it is easy to see why in the Miami market in particular with inventory at such short supply. Further, the index has not been this high since January of 2006! David Crowe, the chief economist for NAHB released this statement regarding the recent numbers, "Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten."
Currently in South Florida there are over 160 planned commercial and residential developments with no sign of slowing down. This last index is the result of a poll of 281 builders, and economists predict continued improvement in this indice. Several factors are attributed to these gains. Hiring has been steady and mortgage rates, while increasing this year, are still relatively low compared to in 2006. Nationally, inventory of existing homes was down 10%, so the demand for new homes is really necessary. Demand for homes is up and existing homes are simply not available in many markets. Sales of new homes is at the fastest pace than it has been in 5 years. We are pleased to report these numbers and will continue to update you with the latest in regional and national real estate news.