Graph courtesy of: Commerce Department
Mid-way into 2015 and the American housing market is continuing to boom. Of late, new construction and building permits have been sky rocketing. Over the past year, building permit applications have risen 30%, an incredible advance compared to years past.
There are a few factors leading experts to believe that housing starts will only continue to rise in the upcoming months. Some of these factors influencing the promising stats include; a currently robust inflation and a recent rise in homebuilder sentiment. Home builder sentiment is a homebuilders' confidence in the market for new homes. The level of home builder sentiment in the United States is back up to levels not seen since the height of the housing boom a decade ago, according to article in USAToday.com. The statistic is the highest it’s been since 2005.
An article written by Scott Grannis, a former Chief Economist at Western Asset Management, a Pasadena-based, global management firm of fixed-income portfolios for institutional clients, sums it up perfectly. Grannis said, “Inflation is alive and well, and so is the housing market. And, most likely, so is the U.S. economy. The Federal Reserve is absolutely justified in beginning to raise short-term interest rates, and the sooner the better, in my estimation.”
As for the local market here in southern Florida, new building construction is also thriving. The northern, central and southern regions of Palm Beach County are experiencing substantial jumps in residential building permit applications, new construction and ready-to-sell new estates. The new Palm Beach County homes range in price from the mid $300’s to $1 million plus residences. Martin and St. Lucie Counties are also enjoying the bump in growth. New construction in Martin and St. Lucie Counties range from the low $200’s to $1 million plus are now available for sale.
All of this new construction and building permit applications are bright indicators of a healthy housing market and an even healthier market future!