New housing starts and home sales are considered to be indicators of economic strength. So the latest data should signal good news for Florida contractors and workers in the construction trades.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development recently released statistics that show an uptick in new residential construction activity during the month of June 2017.
Nationwide, the number of privately owned, new home construction starts was 1.21 million — up 2.1 percent over the June 2016 level. The number of privately owned housing completions for the month was 1.20 million – up 8.1 percent year-to-year.
The news followed a June report by Reuters that noted U.S. homebuilding had fallen for the third-straight month in May. However, the U.S. Bureau of Labor Statistics reported that the construction industry gained 16,000 new jobs in June and 6,000 new jobs in July, with the residential sector fueling growth.
Locally, FloridaRealtors reported positive movement in the sale of single-family homes, townhouses/condos and manufactured homes in June, noting that new homes listed in the Sunshine State are selling quickly.
Compared to the same month last year, the number of single-family home sales rose 4.3 percent, while townhouses/condo sales increased by 4.9 percent and manufactured homes sales jumped 9.1 percent.
Sales prices in June were also higher: The average price of a single-family home was $328,921 (up 7.3 percent); for townhouses/condos, the average price was $255,717 (up 5.9 percent), while the average price for a manufactured home was $87,288 (up 14.8 percent).
The data, so far, are in line with what analysts predicted the housing market would look like in 2017. Sales prices are expected to continue to rise with increased demand from homebuyers, with younger individuals born after 1980 increasingly looking to own a home rather than rent. Some experts suggest that there may also be a growing premium on high-end homes because they’re more profitable to build.
Housing and real estate data for July 2017 will be released later this month.
A Florida contractor licensing company can help individuals and companies navigate the state’s licensing requirements, with approvals as quick as 10 days. For more information on Florida contractor requirements or to get an application started, visit our Florida contractor’s license site or call 239-777-1028.