Housing starts, which is the measure of home builders permit applications, have jumped in June to 6.9%. This is the highest it has been in 3.5 years. Further, construction of homes and apartments is up to the adjusted seasonal rate of 760,000 according to the Department of Commerce. This is the highest it has been since October 2008. Single family home construction was up 4.7% and in the south new construction was up 4.2%. Senior Economist for the National Association of Home Builders released this statement, “We’re finally starting to get some traction and move up in a credible way.” What great news for the real estate recovery.
While credit conditions remain tight, federal first time home buyer incentives and record low mortgage rates are creating a very favorable climate for buyers. Sellers alike are seeing home prices stabilize, as there are fewer distressed properties being released and the demand for homes remains high. In South Florida, the inventory is shrinking rapidly and in some areas it is as little as a 3 month supply. In Miami Beach, in both the condominium and existing home market, there are increasingly few properties available. If you are looking to buy a condo or home in Miami Beach, or looking to sell your home, please contact us today!