Positive reports continue for the housing market in the third quarter. The National Association of Home Builders (NAHB)/First American Leading Markets Index (LMI) shows 79 of the approximately 360 metro areas across the country either returned to normal levels of economic and housing activity or exceeded it in the third quarter of 2015.
Housing markets are improving gradually, including the Coral Springs real estate market, as the economy gets better and jobs continue to be created. NAHB Chairman Tom Woods reported that the real estate markets that were most affect the by downturn a few years ago are showing the best improvement, with the largest year-over-year LMI score increases noted.
Some of these markets included Florida, California, Michigan, Ohio and Arizona.
South Florida Housing Improvements
Palm Beach, Broward and Miami-Dade counties were part of the hardest hit real estate markets back in 2008. However, in the past three years, home prices and sales have steadily increased for most areas of these counties.
The Sun Sentinel recently reported that Broward County’s median price rose 8 percent from a year ago to $290,500. This includes homes for sale in Coral Springs. While in Palm Beach County, the median was up 6 percent to $285,000.
Additionally, the Freddie Mac‘s Multi-Indicator Market Index, which ranks the nation’s 100 largest markets by how stable they are, scored Palm Beach, Broward and Miami-Dade counties with 84.7 for August. This number is a 14 percent increase from the same time last year.
Confidence Strong for 55 and Older Housing Market
More positive news for the housing market continues. Steady, positive growth in the 55+ market may be a reflection of the overall housing market with many consumers now being able to sell their current homes at a price that reasonable, which then enables them to rent or buy in a 55+ community.
The NAHB’s 55+ Housing Market Index (HMI) indicated builder confidence was up in the third quarter of 2015.
The reading from the HMI came in at 60, which increased 3 points from the 2nd quarter report and is the 6th quarter in a row that showed a reading above 50.
Measurements from the HMI 55+ report takes into account the following 3 components: prospective buyer traffic, current sales and the expected sales for a particular market in the next 6 months. There are 2 segments that are examined in the 55+ HMI: multifamily condominiums and single family homes.
Based on a survey, the HMI 55+ index measures the market as good, fair or poor. Any index number that comes in above 50 specifies the market is good by builders.
All 3 components of the 55+ single-family HMI posted increases from the previous quarter:
Sales: Increased 3 points to 65
Expected sales for the next 6 months: Rose 1 point to 67
Traffic of prospective buyers: Increased 3 points to 46.
Chairman of NAHB’s 55+ Housing Industry Council Timothy McCarthy said this reports shows that builders are confident in the 55+ housing market. He indicated all markets, including the single-family, apartments and condos, are all doing quite well, and expectations from builders are for this housing trend to continue.
