The report from the last couple of months is showing some interesting stats. The rise in home demand is obvious and this might create a boom in the following year if the constructors can follow it. The starters and the starting pace are bigger than the last year, and the money earned too. However, let us see the details because this blast can be something big.
The rise of the demand
The whole situation is based on the fast construction of the new homes. The offers of new homes are being added to the supply. As soon as the new building appear on the market, the buyers are buying them almost the same minute. This is creating a very aggressive building pace. Brad Hunter, the chief economist of Metrostudy, says that the demand is very high. This website is doing surveys once in three months, and they can only conclude that the builders have a hard time. The demand is so high that the building processes are being sped up. This can result in a great income or in a great fall of the market.
The Metrostudy’s latest reports have showed us that the sale started up to 42%, and from 893 to 1.282 in the fourth quarter. These were Southwest Florida results, but on the annual plan, the start pace increased for 18%, to 4.800 with more than 4.083 in the quadrant quarter. This was way greater amount than in the last year’s quarter.
Metrostudy has also reported that quarterly Washington, D.C. report covers only Collier and Lee counties. In this report, town and single-family homes and duplexes are included, but the report is left out the condominiums. As the report shows, the starting pace in Collier County was up 22% over the whole year, while it was 10% in Lee County.
If we take a brief look through the stats that include these counties, we can see that 3.151 houses that were made in the 4th quarter had a price over $300.000. That is twice as the number of houses with the house under $300.000, which amounts 1.553. However, the most common price ranges for starts were between $300.000 and $399.000.
This rush of new buildings are helping with the supply. However, there still are not enough homes to satisfy the buyer’s market. Supply is at seven or eight months in Lee County while nine months are considered normal. This rush is supporting the budget of the construction firms, and they can get a big benefit from the whole situation.
The number of starts
If we look at annual stars that concern only single family houses, Ave Maria is leading with 316 starts by various builders. On the second place, we have GL Home’s Marbella Isles with a good amount of two hundred and forty three starts. Behind Marbella Isles comes Toll Brothers’ Bonita Lakes with two hundred starts. For Naples real estate, Minto’s The Isles of Collier Preserve have the fourth place with 171 starts. Behind them comes Plantation with 147 starts and WCI’s Pelican Preserve with the number of 128 starts. The last two places go to multiple builders with 125 starts that were working at Fiddler’s Creek and DiVosta’s Winding Cypress with only 111 starts. However, it does not matter which position they have taken, all these companies have gained a good benefit from these projects.
The future is also bright. By the last of 2016, the Metrostudy predicts that housing starts will reach 1.23 million. This is a very good progress comparing to the last year where the total amount of stats came to 1.1 million. Brad Hunter added that he expects that housing market will live its expand in the next couple of years. However, price gains will slow for new homes. He predicts this guided by the fact that the prices of the new homes have gone up much faster than the existing home prices. This gap will be even wider and the buyers would not have the money to support it.
As usual, the situation is tight. The house demand is getting bigger, and the constructors are giving their best efforts to follow this demand. The people are eager to buy more homes, so the number of starts is rising. The prices of homes are stable, and the majority of them was sold for more than $300.000. This is a great opportunity for the constructors to refill their budgets. However, they will have to work day and night to satisfy the demand.