The Summer Doldrums
We have all heard this phrase “the summer doldrums” and associate it with a slow down. Here is the dictionary definition:
doldrums. a state of inactivity or stagnation, as in business or art: August is a time of doldrums for many enterprises. a belt of calms and light baffling winds north of the equator between the northern and southern trade winds in the Atlantic and Pacific oceans.
Here in Southwest Florida it has deeper meaning by both definitions. In the literal sense we find that the waters on the Gulf are much calmer than normal. For us boaters it is an opportunity to get out and enjoy the Gulf of Mexico without having to worry too much about choppy waters. More importantly though, from a business perspective, it is the time of year when things are most calm. Year round residents enjoy less crowded highways and shorter lines while checking out at stores. Most importantly though, they enjoy the best deals of the year. Merchants are offering all kinds of incentives to drum up summer business. Coupons, 2 for 1′s, and incentives abound this time of year as merchants vie for the local residents who clearly have the upper hand this time of year.
It should come as no surprise that the same concept exists in the Real Estate market. We are in a seasonal market and the majority of residents think seasonally. Come January the market will be flooded with new listings and higher prices and transactions in April and May will be double that of August and September.
We are all familiar with the contrarian theory and for those of us that are willing to adopt it there can be rewards. In every market there are those who for whatever reason need to sell. It only stands to reason that those who need to sell in the summer have fewer buyers and will therefore pay more attention to whatever offers they receive. Are you a contrarian? If so we want to hear from you. Brad and I stand ready to assist you in finding the dream home you have been waiting for. Give us a call at 239-963-4811.
Lennar Building in Daniel’s Preserve
Daniel’s Preserve is a private gated community in the Master Planned Development of Gateway. Locationally, the community is situated just off Daniels Parkway in the much desired South Fort Myers area. At only 5 minutes to the Red Sox Spring Training facility, 10 minutes to the airport, and easy access to shopping, restaurants and more, Daniels Preserve offers its roughly 200 homeowners the ideal living situation.
I personally purchased a primary residence in the community in 2013 and thoroughly enjoy it (so, yes, of course I am biased!).
Mercedes Homes built the majority of the existing homes in the neighborhood prior to their demise after the boom years of 2005 and 2006. Since then, an investor purchased the 15 remaining empty lots in 2010 for $180,000, according to tax records, and has been sitting on them since. On July 23, 2014, Lennar purchased these 15 lots for $922,500 and is building to finish out Daniel’s Preserve. Brand new construction home prices range from $270k-$432k and as always with Lennar are considered “Everything’s Included.” This means the homes will come standard with many of the optional upgrades other builders offer, such as granite counter tops, stainless steel appliances, smart home locks, etc.
As Lennar continues building their homes, I will be posting updates of progress. If you are interested in new construction Lennar in Daniel’s Preserve, you can contact me directly at 239-244-1340 or by contacting us here. I can provide you the available floor plans and lot-specific pricing for each opportunity.
Conurbation – The Not-So Dirty Word for What is Happening in SWFL
As real estate development continues pushing forward in Southwest Florida, we get to experience first hand a unique word in the English dictionary. The word “Conurbation” is defined by Merriam-Webster as “a large area consisting of cities or towns that have grown so that there is very little room between them.”
Originally settled around the 1880’s both Naples and Fort Myers have grown extensively, primarily due to the draw of tourism. With only 30 miles separating the two cities, and populations and commercial enterprises booming in both, it was only a matter of time before Southwest Florida essentially became one metropolitan area. Now, we have the city of Bonita Springs and the town of Estero located directly between and the distinction driving from Fort Myers to Naples has essentially become one continuous residential and commercial conglomeration.
So, yes, conurbation is a fancy word, but why does all of this matter? With some of Southwest Florida’s major attractions of shopping and restaurants located between Fort Myers & Naples, such as Gulf Coast Town Center, Miromar Outlets and Coconut Point Mall, the area is primed for current and future real estate development. Couple this fact with Hertz moving its Global Headquarters to Estero and created over 700 local jobs and we have a winning recipe for real estate well into the future.
Community of the Month: Hampton Park
This month we are visiting a community that is both established and brand new all at the same time. The community of which I speak is Hampton Park in Gateway. Hampton Park is a WCI community and had its start back in 2005 just prior to the downturn. In the WCI tradition Hampton Park is well appointed when it comes to amenities. The center of attention goes to the 5300 Square Foot clubhouse and its beautiful resort style pool featuring an outdoor grilling area where you can entertain friends and family. The pool and lounge area define Florida outdoor living. Inside you will find the luxuriously appointed meeting rooms complete with a catering kitchen. Whether inside or out you have whatever you want when it comes to entertaining your family and friends. For the active souls the clubhouse features a state of the art fitness center complete with all the equipment you need and expect to get a good work out and the fitness doesn’t stop there. Step outside and you find basketball and play grounds for the kids.
While construction virtually stopped in 2009 it resumed again in 2013 and is now moving forward at a feverish pace. When it comes to value in new construction Hampton Park leads the pack. Take a look at this home featuring just under 2100 square feet at an amazing price of $225,190.00.
This is an amazing price for new construction in an upscale neighborhood. Take a look at these features. Three bedrooms, two baths plus a den and a 2 car garage give you plenty of space. Top it off with Granite counter tops and a full array of appliances. You will find brick pavers on the driveway and back lanai and a professionally landscaped, sodded and irrigated yard. As always Brad and I are anxious to share more with you regarding this fabulous community and to show you in person all it has to offer. Give us a call at 239-963-4811.
Sometimes the best news is no news at all and that is how I would describe our current Real Estate market “Steady as she goes”. First let’s talk about the average number of days on the market. The average monthly number is 90 days with the high being 91 and the low being 88. We hear talk of shortage but the numbers say otherwise. Of course there is always the challenge of finding what you want at the price you want and that never changes.
So what about the number of sales? Again, the phrase “steady as she goes” rings true. In May of 2013 there were 3378 homes sold and in May of 2014 3264 were sold. See the monthly sales for the previous 3 years.
This leads us to the all important question. What about prices? The phrase “steady as she goes” applies here as well but in a different way. What we are seeing here are steady increases. This is perhaps the hardest number to pin down because many factors come in to play. Median price is a good indicator but can be misleading. The median price in January of 2013 was $160,000.00. By December it had risen to $186,000.00 and as of May 2014 it was sitting at $223,500.00. Clearly prices are rising but one must consider the mix of sales. The number of homes sold under $100,000.00 has dropped dramatically and the number of homes selling for over $1 Million has increased dramatically inflating this number by more than just the difference in square foot price. This chart illustrates these differences.
While we still hear the occasional cry that we are approaching another bubble the statistics do not support that. Southwest Florida has had one of the strongest recoveries in the nation but let’s not forget that we also suffered the most severe downturn as well. According to the National Association of Realtor Editors prices in Southwest Florida are still 40% below their peak. What I see is a healthy market. Boomers are moving to Florida, population is increasing, new construction while on the rise is well below historic levels, and homes of every kind are selling quickly. As always, Brad and I are eager to discuss the market and assist you in evaluating the information.
Click HERE for additional details regarding this Village Walk of Bonita Springs Home for Sale.
This Village Walk of Bonita Springs home for sale is a great opportunity to purchase an UPGRADED home in the highly desirable Village Walk of Bonita Springs. WHY WOULD YOU CONSIDER BUYING NEW? The buyer loved Village Walk so much they purchased a new Estate Home. This is your chance to cash in on all the money and TLC they put into this Village Walk of Bonita Springs home for sale.
They upgraded this Village Walk of Bonita Springs home for sale with the finest of everything. Electric storm shutter for the lanai so all you have to do to go back north is hit the switch and lock the door. All other shutters are clear Lexan so the light can shine through. Brand new top of the line washing machine. New high output pool pump. 2 year new pool heater, UV light system on the Air conditioner and a Salt Water Pool for low maintenance enjoyment. They did everything and did it first class so you won’t have to! Tens of thousands of dollars in improvements to make this Village Walk of Bonita Springs home for sale the most enjoyable and maintenance free home in the community.
Sit on your lanai and look out at the lush landscaping and the beautiful lake that define Village Walk. Of course, there is the DiVosta signature quality construction and the world class amenities that make Village Walk of Bonita one of the most sought after communities in all of Southwest Florida. It is time for you to take the leap and join the fun. Call for an appointment now to tour this Village Walk of Bonita Springs home for sale now!
Village Walk of Bonita Springs is a prestigious, lifestyle community located off of Bonita Beach Road and is within close proximity to amazing beaches and shopping/dining in nearby Naples and Fort Myers. This magnificent community is known for its world-class amenities and low association fees. Village Walk offers residents a variety of single-family homes and townhomes constructed by award-winning builder, DiVosta Homes.
Village Walk of Bonita Springs was designed to provide all of the necessary conveniences right outside your doorstep. You can find a hair salon, post office, gas station, boutique, cafe and restaurant all within walking or biking distance to your home. The town center is the main hub for the numerous activities offered to residents. Village Walk features two pools, a clubhouse, tennis courts, a fitness center, basketball courts, a library and scenic jogging paths. This community is also staffed with a full-time activities director that coordinates many of the planned events throughout the year.
Resort style living is at its finest at Village Walk of Bonita Springs. Residents enjoy easy, low-maintenance living all year round. If you want to take advantage of this great opportunity to own a home in Village Walk, contact us today. Schedule your appointment to see this highly sought after Village Walk of Bonita Springs home for sale.
If you would like additional information regarding this Village Walk of Bonita Springs home for sale feel free to reach out to us at 239-963-4811 or Contact Us.
Click HERE for additional details regarding this Paseo Fort Myers Condo for Sale.
This Paseo Fort Myers condo for sale is extremely rare! Now is your opportunity to own a highly upgraded San Pablo flat that is directly on the water in Paseo Fort Myers. There are only 8 total of this floor plan on the “Butterfly Lakes” within Paseo, the 8 time “Community of the Year” winner! Most other waterfront properties would have a street between you and the water but that is not the case with this Paseo Fort Myers condo for sale.
Open up doors & windows to your screened lanai to the tranquil sounds of the water fountain and fantastic water views. In this Paseo Fort Myers condo for sale you will find 3 bedrooms, 2 bathrooms and a built-in office. Upgrades include granite counter tops, 18 inch tile laid on diagonal throughout the living area, highly upgraded cabinetry, upgraded carpet, under cabinet lighting, crown molding and more.
This Paseo Fort Myers condo for sale is only a couple years young and still feels brand new. Come enjoy the Paseo resort lifestyle in one of the most popular floor plans.
Paseo Fort Myers is a one-of-a-kind community in Fort Myers. Conveniently situated in the upscale Daniels corridor, Paseo Fort Myers is in the heart of Fort Myers. The community is located only 10 minutes from the International Airport (RSW) and between both the new Boston Red Sox spring training facility and the Minnesota Twins spring training facility. In addition, shopping, dining & entertainment at Bell Tower Shops and Gulf Coast Town Center are just 10 minutes away. Gulf Coast beaches, downtown Naples and many more great Southwest Florida attractions are all within close proximity to this desirable Paseo Fort Myers community.
One of the major attractions to the community is the Mediterranean atmosphere. Paseo Fort Myers lets you experience paradise how it is meant to be experienced. The 26,000 square foot Town Center lets you enjoy all of the amenities, whether you want to experience the luxury resort-style pool, the top-tier spa, the fitness center, the Pub, the movie theatre, the old-fashioned ice cream parlor, the Internet café, fishing pier, the bocce ball courts, or the 6 Har-Tru tennis courts, you will find your slice of heaven within the gated community.
Schedule your appointment to see this highly sought after Paseo Fort Myers condo for sale.
If you would like additional information regarding this Paseo Fort Myers condo for sale, feel free to reach out to us at 239-963-4811 or Contact Us.
Click HERE for additional details regarding this completely remodeled home in Mahogany Isle at Gateway.
This completely remodeled home in Mahogany Isle at Gateway is a must see! Do you love the large lots, low HOA fees, low taxes and the charm of Gateway Golf & Country Club but yearn for an updated home? Here you can have the best of all worlds.
This completely remodeled home in Mahogany Isle at Gateway features 4 bedrooms, 3 bathrooms, 2-car garage and a beautiful private pool. It also has long lake views and has been completely remodeled from top to bottom with exquisite taste. Turkish Travertine marble floors in a Venetian pattern and Cararra marble vanities with vessel sinks in all three bathrooms are some of the luxurious amenities of this completely remodeled home in Mahogany Isle at Gateway. The York Chocolate kitchen cabinets are topped off with high-end granite counter tops. The kitchen design features a low bar island, under cabinet lighting and brand New stainless steel appliances and New carpeting, New light fixtures, New water heater and newer A/C are other great perks this completely remodeled home in Mahogany Isle at Gateway has to offer!
Gateway is a master-planned development with over 3,000 acres of land and is subdivided into more than 20 extraordinary communities. Not only does Gateway offer an outstanding mix of real estate options, it’s also home to several restaurants, a gas station, retail shops, schools and a business park with more than 40 businesses. Gateway is located in Fort Myers, east of I-75 off Daniel’s Parkway and is just minutes from the airport, Red Sox spring training facility, Gulf Coast Town Center and more.
An array of recreational amenities are available to the residents of Gateway. The Gateway Golf & Country Club features a Tom Fazio designed, 18 hole golf course. In addition, you will find a clubhouse, dining room with formal and casual dining, meeting room, fitness center, pool, tennis courts, soccer complex, baseball field, basketball court, volleyball court, playground, parks and fitness trails.
Schedule your appointment to see this beautiful and unique completely remodeled home in Mahogany Isle at Gateway.
If you would like additional information regarding this completely remodeled home in Mahogany Isle at Gateway, feel free to reach out to us at 239-963-4811 or Contact Us.
Pelican Preserve Fort Myers is a master-planned, 55+ active adult golfing community located at the intersection of Colonial Boulevard and Treeline Avenue. Conveniently situated, Pelican Preserve Fort Myers is just minutes from shopping and dining at The Forum, Southwest Florida International Airport, Gulf Coast Town Center, Bell Tower Shops and the new Boston Red Sox Spring Training Facility. Fort Myers Beach, Sanibel Island and Captiva Island are a short drive from Pelican Preserve Fort Myers and easy access to I-75 is just one mile from Pelican Preserve Fort Myers.
This botanical paradise offers care-free living with maintenance and landscaping included. With over 1,100 manicured acres of land and lush landscaping, this community is absolutely stunning. Pelican Preserve Fort Myers was developed by WCI Communities and offers a variety of homes within the gated community to suit every lifestyle. Divided into several distinct neighborhoods, Pelican Preserve Fort Myers consists of carriage homes, detached villas, attached villas, condos and single-family homes. Once complete, Pelican Preserve will be home to 2,500 residences. Both new construction and re-sale options are currently available. Please inquire HERE for details on PRE-CONSTRUCTION PRICING.
Pelican Preserve Fort Myers is known for its superb list of social activities and upscale amenities that are available to residents. The Plaza del Sol Town Center serves as the hub for all the community activities and features an array of both indoor and outdoor amenities. A full-time activity director is on staff to coordinate the busy social calendar. Amenities at Pelican Preserve Fort Myers include an outdoor amphitheater, art studio, game room, state-of-the-art fitness center, indoor walking track, indoor lap pool, spa, cyber cafe and library. In addition, 6 lighted tennis courts, a resort-style pool, volleyball court, softball field, basketball court, private sandy beach and fishing pier can be found at Pelican Preserve Fort Myers.
Nature lovers will enjoy the 38-acre preserve that features a butterfly garden and boardwalk. Dining destinations at Pelican Preserve Fort Myers include lunch and dinner options at the Plaza del Sol, breakfast and lunch at the golf club and pool side dining at the resort-style swimming pool. For the golf enthusiasts, Pelican Preserve Fort Myers features a Chip Powell designed 27-hole championship course that will be a challenge to golfers of all skill levels. The golf club at Pelican Preserve Fort Myers also features an extensive pro shop inside the 25,000 square foot clubhouse.
This affordable, yet luxurious community offers something for everyone and is a premier community for active adults in Fort Myers. From the abundance of resort-style amenities to the vibrant country club lifestyle to the many housing options available, Pelican Preserve Fort Myers offers an unparallel experience for residents. If you are interested in learning more about this community, contact us today for a tour and to see the available homes on the market or let our team assist you with building a home in Pelican Preserve Fort Myers.
Below you will find the complete list of homes active on the market within Pelican Preserve. If you would like to schedule an appointment to view any of them, you can do so directly from the “View Details” page, or call us at 239-963-4811.
View the Google Map below to get an idea for where Pelican Preserve is located within Fort Myers, FL.
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It almost sounds too good to be true. The fact that IRA holders can use their retirement funds before retirement age to purchase real estate without incurring penalties or taxes might be news to some. However, increasing numbers of people are discovering the benefits of investing in real estate with their retirement funds.
Ways to Purchase Real Estate with your Self-Directed IRA
A self-directed Individual Retirement Account (IRA) is similar to other IRAs but allows a broader range of investment opportunities, including real estate and grants the owner the right to make the investment decisions and not a brokerage firm. A self-directed IRA needs to be set up with a custodian who is experienced in administering such an account, such as Advanta IRA.
1. Cash Purchase – If you have sufficient funds in your self-directed IRA to cover the entire real estate purchase, including closing costs, taxes, fees and insurance you may make the purchase outright using your self-directed IRA. All ongoing expenses relating to the real estate investment must be paid out of your self-directed IRA. In addition, all income or gains relating to your real estate investment must be returned to your self-directed IRA.
2. Percentage Ownership – You can multiply your buying power by partnering with others. Just because you don’t have enough cash in your IRA does not mean you cannot buy real estate. All income and expenses would be allocated to the parties in relation to their percentage of ownership in the property.
3. Nonrecourse Loan – This option allows the IRA to borrow money to purchase real estate. An IRA can borrow money, but it must receive a nonrecourse loan. This means the IRA holder cannot personally guarantee the loan, only the property will be used as collateral.
4. Checkbook Control – With a slightly different structure, the IRA is set up as a self-directed IRA LLC. An LLC is created for your money to be held and for you to invest at your discretion. A custodian is not required to execute each transaction.
Know the Rules
• Any property purchased by an IRA is owned by the IRA…not an individual.
• Any money used to purchase a property with an IRA must come directly from an IRA, not an individual.
• You cannot be reimbursed by your IRA.
• Any expenses or repairs must be paid directly by the IRA. An IRA custodian can assist with this.
• Any income generated from the property must go back into the IRA.
• Purchases made with an IRA need to be for investment, not personal use.
• The real estate you buy must be an investment property(personal use is prohibited).
• An IRA cannot do business with family members which includes you, a spouse, parents, children, grandparents, grandchildren and great-grandchildren.
• Use of an LLC custodian is required by the IRS since you are unable to personally renovate or actively manage the property yourself.
For those interested in investing retirement funds in real estate, the great news is there is something for just about everyone. The opportunities to invest in real estate right now are incredible…especially when you combine this with the ability to use a self-directed IRA.
We at Absync Realty are uniquely positioned to assist you with this investment strategy. We have personal experience in purchasing, renovating, leasing and selling IRA investment properties. Our property management arm allows you to use this unique and profitable investment strategy without any of the headaches often associated with real estate. We handle everything and ACH the funds directly into your IRA each month.
Give us a call at 239-963-4811. We are anxious to share with you the benefits and personal success stories from self-directed IRA real estate investing.
Click HERE for additional details regarding this furnished condo for sale in Heritage Palms Fort Myers.
This furnished condo for sale in heritage Palms Fort Myers is a must see! If you are looking for a sedentary lifestyle then this is not the place for you. Heritage Palms Fort Myers defines an active lifestyle. Start the morning with a bike ride or walk through the scenic grounds, stroll over to the club house at Heritage Palms Fort Myers for breakfast or a cup of coffee, then off to the driving range to get ready for your round of golf on one of the two Azinger / Lewis courses. Round out the day with a dip in the hot tub, a little bit of tennis or a good card game, then off to happy hour.
Featuring 2 bedrooms and 2 bathrooms, this furnished condo for sale in Heritage Palms Fort Myers is professionally decorated and move in ready.
This furnished condo for sale in Hertiage Palms offers something for everyone. The full time activity director keeps the place hopping but when peace and quiet are the order of the day, your private lanai overlooking the lake and manicured grounds will fill the bill. This designer decorated home is turn key and ready for season. Make your appointment to see this fabulous furnished condo for sale in Heritage Palms Fort Myers today!
Heritage Palms Golf & Country Club is an 800 acre luxurious bundled golf community in Fort Myers and is located off Six Mile Cypress Parkway between Daniels Parkway and Colonial Boulevard. The stunning landscaping within this gated community includes a 12-foot waterfall that cascades down to a rock pool, a palm lined inlet and sparkling lakes throughout. Heritage Palms is comprised of 1,662 residences and offers single family homes, luxury twin villas, 2-story verandas and 4-story terrace condos.
Heritage Palms in Fort Myers features 36 holes of golf and offers residents many additional amenities. The 28,400 sq ft clubhouse overlooks the freshwater lake and provides formal and casual dining options, heated swimming pools, spa, cabana, fitness center and tennis. A second 5,000 sq ft clubhouse called the Lodge is the hot spot for many social activities including billiards, cards, bocce and a pool side Tiki Bar.
This golf & country club in Fort Myers offers a lifestyle for everyone. Enjoy a beautiful community with manicured greens, tropical landscaping and grand amenities at Heritage Palms Golf & Country Club.
If you would like additional information regarding this furnished condo for sale in Heritage Palms Fort Myers, feel free to reach out to us at 239-963-4811 or Contact Us.
Click HERE for additional details regarding this furnished condo for sale in The Towers Fort Myers.
This furnished condo for sale in The Towers Fort Myers is a must see. This condo has been meticulously and completely remodeled with top grade finishes. New cabinetry, granite counter tops, marble back splash, stainless appliance and new carpeting can be found in this condo for sale in The Towers Fort Myers.
This condo is turn key decorator furnished. Step into the glass elevator overlooking your lush tropical courtyard and pool and rise to your third floor haven and your tropical paradise awaits you. Just bring your toothbrush, swim suit and flip flops and you are ready to go.
The Towers in Fort Myers is a luxury condominium complex centrally located and close to everything. Whether you are looking for the action of the newly rejuvenated Fort Myers Riverfront entertainment district or the peace and serenity of the ocean waves lapping on the shores of the beach, you are just minutes away when living in The Towers Condos in Fort Myers. Better yet, just hang out at this secluded tropical feeling enclave with everything you need or want within walking distance.
The Towers in Fort Myers features beautiful grounds that include a community pool, clubhouse, gardens and gas grills. Residents that reside within the condos in The Towers enjoy the central location and tropical setting. This complex is tightly managed and expertly maintained.
This guest post is from Jillian Dohack, my wife, and short sale specialist at Winged Foot Title in Fort Myers. -Brad
Nationwide, inventory of foreclosed homes fell 32 percent in July compared to a year ago, which might be a sign that the foreclosure crisis may be coming to an end. According, to CoreLogic’s latest foreclosure report. CoreLogic is a leading residential property information, analytic and services provider.
Florida is still among the five states that had the highest foreclosure inventory along with New Jersey, New York, Connecticut and Maine. However, it was also shared that in July, 949,000 homes were in some stage of foreclosure, which is down from 1.4 million a year ago.
It also shared that in July, there were 49,000 completed foreclosures, down from 65,000 a year ago. Prior to the housing crisis, completed foreclosures were averaging 21,000 a month. This must mean that the number of foreclosures up for sale nationwide is gradually decreasing.
As the housing market continues to recover and improve, banks are starting to clear out their distressed property inventories. Fewer foreclosures flooding the housing market are positive for both borrowers and homeowners as these homes have brought property values down. The fewer that are around, the stronger prices will become.
With the improvement of the housing market and prices rising, this could relieve many households from negative equity. This all sounds like positive news for Southwest Florida!
What are your thoughts?
While home-builder stocks have made great strides in the past year, they have become volatile recently as investors deal with mixed economic housing data and rising mortgage rates. Investors have started to question the housing recovery and interest rates are putting pressure on home-builder stocks. But take a close look at the data, this just might be a great buying opportunity for investors if they can plan long-term and weather the “re-adjustment” period.
As you see, the National Association of Homebuilders (NAHB) reported that sentiment is up and confidence has risen to a seven-year high as the housing market makes a recovery, but the Dow Jones U.S. Home Construction Index is down. This is creating a huge gap between sentiment and performance. Homebuilders’ sentiment and home-builders’ stocks traditionally move in sync with one another. But that is not happening right now.
Homebuilders are enthusiastic. The latest reading of the National Association of Homebuilders (NAHB) sentiment index jumped to 59, its highest reading in almost eight years. Single-family home starts in July were up 15.4% over last year according to the U.S. Census Bureau and building permits were up 12.4% above July 2012. Building permits are traditionally viewed as a gauge for future demand. In fact, builders report they are seeing more and more motivated buyers according to NAHB chairman, Rick Judson.
With all this enthusiasm among homebuilders, you’d think investors would be feeling the same. However, investors are staying clear. Higher interest rates make mortgage loans more expensive, which in turn weakens the demand for new homes. This explains why new home sales in July dropped 13.4%. This is one of the main reasons why home-builder stocks have taken a plunge over the recent weeks. With this news, the outlook looks positive considering new home sales are still up 6.8% from a year ago. Despite concerns over the rising interest rates, the recent dip in home-builder stocks could be considered a good opportunity to tap into them now as homebuilders are geared for continued strong growth and momentum into 2014. Long-term trends in the home-building sector may be promising.
So who’s right, the investors or homebuilders? Are investors’ fears over real estate investments justified or do homebuilders know best? It will be interesting to see what happens. Comment and let us know what you think or contact us at 239-963-4811.