This August 2015, builders showed the most optimism in the housing market since 2005. In 2005, the last time these high peaks of optimism were reached, there was a housing boom fueled by debt. Now, however, the housing market is healthy.
According to Florida Realtors, “the National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose this month to 61, the highest level since November 2005. The reading was 60 in both June and July. Any reading above 50 indicates more builders view sales conditions as good, rather than poor.”
“The fact the builder confidence has been in the low 60s for three straight months shows that single-family housing is making slow but steady progress,” said Tom Woods, a Missouri-based builder and chairman of the National Association of Home Builders.
Why have new homes been flying off the market as of late? Several reasons- most of which have come about due to a finally healthy economy. A great combination of high, stable job gains along with low mortgage rates have encouraged many first-time home buyers to enter the real estate market and purchase. Unlike the 2005 boom, everyone’s sentiments are positive because there is not a huge mortgage deficit.
Employment is also way up. 2.9 million workers have been added in the US in the past year. The unemployment rate has dropped from 6.2% to 5.4%.
With all of these newly employed people come more eligible home buyers. Through the first half of 2015, the government reported that new-home purchases shot up 21.2 percent to 274,000. Builders had been having trouble keeping up to demand. Now, they note that is due to trouble finding workers and land. In the August study though, builders’ views of current sales and buyer traffic had improved.
The lag occurring in supply is improving among builders. As you can see, now is an amazing time to get involved with real estate. Do not wait another moment to purchase your dream home with RE/MAX Paradise!
Optimism high among FL real estate professionals