Sarasota Bay Real Estate Reports New Home Builders Defy Rising Construction Costs

The costs of some major construction inputs are trending ahead of inflation, but home builders appear unfazed as they have put more developments into the pipeline for this 2013, Sarasota Bay Real Estate reports. According to data from the National Association of Home Builders (NAHB), the construction materials’ cost escalation is most evident in lumber prices which are currently estimated to be 35 percent higher than the levels a year earlier.

Sarasota, Florida (PRWEB) January 14, 2013

The costs of some major construction inputs are trending ahead of inflation, but home builders appear unfazed as they have put more developments into the pipeline for this 2013, Sarasota Bay Real Estate reports. According to data from the National Association of Home Builders (NAHB), the construction materials’ cost escalation is most evident in lumber prices which are currently estimated to be 35 percent higher than the levels a year earlier. Overall, prices for other home building inputs were reckoned rising at a +2.0 percent clip, a pace with the rate of inflation.

Nevertheless, government figures released recently indicate that the increase in building materials cost hasn’t dampened home construction activity. Statistics from the Department of Housing and Urban Development and the Census Bureau showed that November private housing starts across the United States rose to 861,000 from the 708,000 registered a year earlier. A 16-percent increase in home-building completions was likewise reported.

Confirmation of the home builders’ robust confidence was likewise provided by the American Improving Markets Index (IMI), a new measure devised by the NAHB to identify metropolitan statistical areas (MSA) that posted improvements from their respective lows in housing permits, home prices, and employment for at least six consecutive months.

For this December, the metro areas which showed improvements in the IMI rose by 76 to 201 metros. Fifteen of these improving MSAs are in Florida. In the North Port-Sarasota-Manatee MSA, a 5-percent growth in building permits was posted from its low in 2009. Home prices were up 7.7 percent from their 2011 trough, while employment growth in the MSA was up 2.8 percent from December 2010 when the jobless rate was at its highest.

National Home Builders Keen on Sarasota

Significantly, Sarasota Bay Real Estate also noted that national home builders are accelerating their activity in the Sarasota-Manatee area. The full service real estate firm cited in particular several projects of the Miami-based Lennar Homes which is adding on more homes at its Stoneybrook community in Venice and at its River Strand neighborhood at Heritage Harbour in Bradenton. Existing residences in Stoneybrook can be listed among homes for sale with base prices in the low $100s up to near the $400s, featuring floor plans of between 1,200-plus square feet and over 3,200 square feet. The sales-listed residences at River Strand typically have quoted prices in the mid-$300s up to the high $400s, with floor areas ranging from about 2,360 square feet to 2,900-plus square feet. Lennar is also set to develop by late January 2013 homes at Cypress Falls, a gated community in The Woodlands at North Port. This is a small neighborhood of only seven single family homes with prices starting in the mid-$100s and their floor spaces in the 1,677–2,529-square-foot range.

For a more prolific builder in Southwest Florida, Taylor Morrison could be a leading candidate with its eight neighborhoods rising between Sarasota and Manatee counties. At the master-planned Lakewood Ranch where Sarasota Bay Real Estate recently closed a sale, the homebuilder is developing the Esplanade Golf & Country Club with 1,250 home sites plus a separate gated community of 247 single family homes, Esplanade by Siesta Key. Building permits for 2013 are likewise being finalized for Taylor Morrison’s 217-acre Arbor Lakes at Palmer Ranch, which is geared for 260 single-family homes.

About Sarasota Bay Real Estate

Sarasota Bay Real Estate is a full service real estate brokerage in Sarasota Florida owned by Sarasota real estate broker, Christina Miller, and marketing professional, Roy Hunter. Together they, and their team of well-experienced agents, provide the best-in-class real estate marketing services for the properties in the company’s inventory.

Sarasota Bay Real Estate Internet assets receive more than 1,000 visits from perspective home buyers a day due to the wealth of local community information published by the company. Through a direct feed from the Sarasota MLS, Sarasota Bay Real Estate publishes the most current real estate information on the Internet for the Sarasota, Florida, market.

Contact information for Sarasota Bay Real Estate can be found at http://sarasotabayrealestate.com