The index, which was released Monday, has risen in seven of the past nine months, suggesting builders are starting tomsee the seeds of a recovery taking shape after years of stagnation, but the market has a long way to go. Any reading below 50 indicates negative sentiment about the housing market. The index hasn’t reached that level since April 2006, the peak of the housing boom. Many of the markets have not fully recovered the index points out where home prices and housing production are no longer retreating. This is a sign that part of the country is starting to turn the corner as economic conditions get better.
Sales of both previously occupied homes and new homes rose near two-year highs in April. And builders are breaking ground on more homes and requesting more permits to build single-family homes later this year. A lot people believe that housing construction has played a major part in economic growth this year. With the mortgage rates and home prices being lower in many markets, buying a home has become very exciting.
In June, builders reported seeing the best sales level since April 2007, according to a separate measure in the survey. Their outlook for sales in the next six months, however, hasn’t changed from May. Seeing that foreclosed properties continue to grow in many markets and consumer worry about job security and the challenges of selling an existing home remain important factors, even with builders reporting more inquiries and more interest among potential buyers than they have seen in previous months.
Jennifer Lee, senior economist for BMO Capital Markets, saya, “June reading on builder sentiment was welcomed news”. Even though both builders and buyers continue to have difficulties accessing credit for new homes the potential sales in some areas where economic conditions are really low have improved. Lee added, “even with recent weak readings on employment, builders’ outlook for sales over the next six months did not decline and foot traffic remained the same”.
Although these new homes may represent a low percentage of the housing sales market, they have a huge impact on the economy. Each home built creates an average of three jobs for a year. While these new homes are creating jobs it could be years before the housing market and the economy have fully recovered.
The Henri Frank Group at Remax Preferred with offices located in Fort Lauderdale, Wilton Manors, Plantation and Hillsboro Shores in Broward County, Florida, USA, has been timeless watchdogs of the recovery of the South Florida Real Estate Market. The Group of FLorida Licensed Real Estate Agents are full service, assisting sellers, buyers and investors in all facets of real estate. The Henri Frank Group has been working with several developers and contractors in developing new construction projects that are soon to launch.
If you are a single family home buyer who would like to consider a newly constructed single family home in Wilton Manors or a single family home in Fort Lauderdale or anywhere in South Florida, contact the Henri Frank Group at Remax Preferred. They can be reached through their website at http://henrifrank.com or at 954-604-9999. Follow the Henri Frank Group on Facebook, http://facebook.com/henrifrank and on Twitter at http://twitter.com/henrifrankgroup
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