The National Association of Home Builders/Wells Fargo (NAHB) builder sentiment index is an index that tracks builders’ views on the current market conditions for single-family homes, where they see the market going in the future, and the level of traffic of potential buyers. A reading over 50 suggests that more builders see the market conditions improving, while a reading less than 50 signifies a lack of confidence in the sector’s growth. Released last week, the index read 59, the highest level since before the crisis. Although the physical sale of homes dropped over the summer, builders are seemingly still optimistic about the future.
On a regional basis, the South was one of the regions that outperformed. Lennar Corp., one of the nations largest homebuilders based here in Miami, reported that completed home sales rose almost ten percent, while new home orders soared 23 percent. Miami real estate in particular has seen a nice uptick in recent months, as the city continues to be a favorite of both domestic and international buyers. As the number of homes built continues to rise, look for a stimulation of economic growth. According to data collected by the NAHB, every home built creates about three jobs while contributing $90,000 in tax revenue.
Looking ahead, property in the South Florida area looks to be a solid investment as homebuilders see the region as one of the strongest in the nation. If you’re interested in building or buying a home in the Miami area please reach out to a RE/MAX agent today!