By Fred Seely, Editor
Early reports indicate that 2013 was a banner year for the state’s home building industry, according to information released by the Florida Legislature’s Office of Economic and Demographic Research. And Northeast Florida sales reports bear that out.
Building permit activity compiled by the Florida Home Builders Association showed a 32.4 percent increase over last year. Over the last eight months, permits were running 42.8 percent above the same period the prior year.
Local building permit numbers for the year have not been released but are expected to be well into the positive range.
The November sales report from NEFAR showed sales prices continued rising with a median of $154,000, an 18.6 percent increase from a year ago. The number of closed sales in November showed 1,531 properties; a 1.9 percent dip from a year ago but up 22.5 percent year to date.
Pending sales were at 1,813 for a 14.7 percent increase from a year ago and a 23.2 percent increase year to date.
Despite an influx of 2,357 new listings to hit the market during November, the overall inventory here dropped to 9,203, 10.7 percent less than a year ago. The reduced supply equates to just 4.9 months’ worth of supply on hand; 26.9 percent less than last year at this time.
“November’s numbers are encouraging and show a substantially stabilized market,” said 2013 NEFAR President Carol Zingone of Prudential Network Realty. “Lender mediated properties are declining, and while prices have risen to the point where sellers are getting more of a return on their investment, prices overall are still within reach for most buyers.”
In addition, figures from the Census Bureau show that Florida’s population grew by 4 percent (232,000 people) in 2013, pushing the state to 19.5 million citizens, trailing only California (38 million), Texas (26 million), and New York (19.6 million).
In other relevant statistics in a report compiled by the Florida Home Builders Association, Florida births and deaths were almost equal last year, meaning that the state’s growth came from migration.
“State economists still believe it will take a few more years for us to climb completely out of the hole left by the recession but we’re well on the way,” said Citrus County builder Ron Lieberman, the 2013-14 FHBA president. “They believe the housing rebound will be led by three factors: low home prices that begin to attract buyers and clear the inventory, long-run sustainable demand caused by continued population growth and household formation that has been pent-up, and Florida’s unique demographics and the aging of the baby-boom generation as 2011 marked the first wave of boomers hitting retirement.”