News that U.S. housing starts in March hit their five-year high on the back of a sharp gain in construction of multifamily homes augur well for job creation which in turn provides an added stimulus for the residential market, Sarasota Bay Real Estate said. For every 1,000 multifamily homes, the full-service real estate brokerage noted that industry estimates put at 1,100 the jobs that are added.
U.S. Commerce Dept. figures released this April showed that construction of multifamily residences including apartment buildings jumped 31% to 417,000 units, the highest level reached since January 2006. Overall, national housing starts this March increased by 7% to 1.04 million units from the revised 958,000 revised annual rate in February.
Builders Are Upbeat
The recent gain in multifamily housing starts jibes with the forecast of the National Association of Home Builders (NAHB) that construction of condos and apartments this year will show a 31% gain for the whole of 2013. This reading took into account the sustained improvement in the NAHB’s Multifamily Production Index (MPI). The most recent survey data gathered from multifamily homebuilders put the MPI at 52, indicating that a majority of these developers are upbeat about market conditions. Notably, an MPI above 50, which indicates more builders are looking forward to an improving market environment, has been observed for three straight quarters last year.
In Southwest Florida, Lennar Homes are one of the active multifamily home builders. Its projects in this area include three in Bradenton: River Strand, Verandas, and Terrace. Lennar is also building in Venice at its Stoneybrook community and in North Port at its Cypress Falls neighborhood.
Available Florida Homes for Sale Close to 10-Year Lows
Developments like Lennar’s should help boost the rapidly shrinking home inventory in the region, Sarasota Bay Real Estate said. For March, it noted that available residential properties in Sarasota are close to the lowest level in ten years. Figures from the Sarasota Realtors Association (SAR) showed that home inventory during the month dropped by 18% from March 2012.
The inventory for Sarasota condos for sale this March was estimated at a 4.7-month supply and at 3.8 months for single-family homes. In the year-earlier period, the inventory levels were at 6.7 months and 4.8 months for condos and single-family residences, respectively. These compare with the 41.7 months supply for condos and 24 months inventory for single-family homes in November 2008, during which the real estate market suffered one of its worst beatings.
Just a little over 200 villas and townhouses are featured in the current MLS of Sarasota homes for sale, as it emphasized that with the relatively few pickings, prospective buyers need to avail of the services of an experienced broker. Some of the most attractive purchase opportunities can be found in the golf community of The Meadows Country Club where there is a rich mix of condos, villas, townhouses, and single-family homes, all totaling 3,400 residences. Multifamily-designed dwellings here are priced starting around the mid-$100s.
