Sarasota, Florida (PRWEB) December 26, 2012
Sarasota Bay Real Estate expects that a richer mix of residential choices is forthcoming for prospective home buyers, as it cites recent reports from the National Association of Home Builders indicating that home builders are strongly optimistic that the current property market recovery will endure and that the demand for new homes is solid. Sarasota Bay Real Estate also reports that the builder sentiment index as estimated by the National Association of Home Builders and Wells Fargo for this November increased to 46 from 41 in October. This latest index reading is the highest since May 2006 just prior to the property market’s bust.
Another indication of the builders’ strong confidence, Sarasota Bay Real Estate reports, is a recent report from the U.S. Census Bureau that new home inventories this October rose to 149,000 from 145,000 units in October, thereby enabling a quick turnaround from the record low posted at the start of the 2012 first half. This July, inventories of new homes nationwide totaled 142,000, the lowest level recorded since 1963 when the government started tracking this statistic. The July 2012 figures represent a 6.4-month supply, which compares with the 9.3-month supply recorded in July 2011.
A big factor behind the builders’ new found confidence is the thinning out of the excess supply of homes that were built before the housing crisis. Notably, the number of previously occupied homes for sale at the national level has dropped to a ten-year low in recent months. This decline is mirrored in the Southwest Florida area where a 55.1 percent decline in October home inventory was recorded for Manatee County and a 52.4 percent drop in Sarasota County. Between the two counties, it was estimated that the residential market has just 4.4 months' worth of existing housing inventory as of this October.
More Choices for Prospective Buyers
Manatee is where renewed construction activity is most evident as the county approved 1,306 home building permits for the first ten months of 2012, a tally that has already surpassed the total for the whole of 2011. For this October alone, Manatee home building permits rose 29 percent to 76 single family homes. Looking at the ten-month cumulative total for Sarasota this year, the county is likewise on track to outperform by 55 percent its total home building permits granted in 2011.
The diminishing home inventory is driving more prospective buyers to search for custom properties, Sarasota Bay Real Estate said, adding that many of them are inclined toward new homes than previously owned residences. To meet such a demand, the realty firm noted that Neal Communities, a leading Southwest Florida developer, has constructed 110 speculative, move-in ready homes. This developer has recently opened in Venice the first phase of its Grand Palm development geared for 1,999 residences and is also building in Bradenton the 140-home community, Fairfield, on State Road 70 just west of Interstate 75.
What is happening now, Sarasota Bay Real Estate observes, is unlike the 2004 building boom wherein entire residential subdivisions were being developed on speculation that a wave of baby-boomer retirees will be moving to Florida. The spike in construction now, SRBE maintained, is driven by actual demand that has been mounting since early spring when the supply of existing residences began to shrink.
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/