3.6% Increase in New Construction Properties Despite the Rise in Lumber Prices.
Inventory is so low right now in SWFL, and the entire country, BUT we are still seeing an extremely high demand from buyers! Bidding wars, all-cash offers, and a race to find your dream home faster than the next guy have led to an up-tick in New Construction homes. Which makes sense, if you’re going to spend all this money, you might as well get the house you want, the way you want it, the first time around. If you’re not desperate on time and can wait a few months, new construction might be the way to go.
See below for stats from the Commerce Department
Home Construction: Up +3.6%
Single Family Homes: +4.2%
Apartments: +4%
Applications for building permits: Down -3%
Seasonally Adjusted Annual Rate: 1.57 Million Units
Builder Confidence: 81 (June 2021)
Lumber Prices: Starting to decrease (mid-2021)
Building Activity
May 2021: +3.6%
April 2021: -12.1%
March 2021: +19.2%
Building Activity By Region in 2021 in the USA
Northeast: -22.4%
Midwest: +29.9%
South: +3.8%
West: +1%
Despite the 2020 nation-wide recession and hardship, the housing market has actually been booming over the past 18 months, especially in new construction. However, economists believe that the new construction wave will begin to slow down. “We expect starts to mostly move sideways over the balance of 2021,” said Nancy Vanden Houten, lead economist for Oxford Economics. “Strong demand, a need for inventory and homebuilder optimism will keep a floor under activity, but builders continue to face supply constraints that may hamper or at least postpone construction.”
The National Association of Realtors (NAR) released a report that there was an “underbuilding gap of between 5.5 million and 6.8 million housing units because of decades of under-investment in home construction. Growth in the nation’s housing inventory has slowed significantly since the turn of the century with every region of the country being affected”
Source -- © 2021 Florida Realtors®
See below for stats from the Commerce Department
Home Construction: Up +3.6%
Single Family Homes: +4.2%
Apartments: +4%
Applications for building permits: Down -3%
Seasonally Adjusted Annual Rate: 1.57 Million Units
Builder Confidence: 81 (June 2021)
Lumber Prices: Starting to decrease (mid-2021)
Building Activity
May 2021: +3.6%
April 2021: -12.1%
March 2021: +19.2%
Building Activity By Region in 2021 in the USA
Northeast: -22.4%
Midwest: +29.9%
South: +3.8%
West: +1%
Despite the 2020 nation-wide recession and hardship, the housing market has actually been booming over the past 18 months, especially in new construction. However, economists believe that the new construction wave will begin to slow down. “We expect starts to mostly move sideways over the balance of 2021,” said Nancy Vanden Houten, lead economist for Oxford Economics. “Strong demand, a need for inventory and homebuilder optimism will keep a floor under activity, but builders continue to face supply constraints that may hamper or at least postpone construction.”
The National Association of Realtors (NAR) released a report that there was an “underbuilding gap of between 5.5 million and 6.8 million housing units because of decades of under-investment in home construction. Growth in the nation’s housing inventory has slowed significantly since the turn of the century with every region of the country being affected”
Source -- © 2021 Florida Realtors®
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Gary Burmylo
Agent | BSL3576128
Gary Burmylo
Agent | BSL3576128
Gary Burmylo brings with him an impressive background of valuable insight and real estate market knowledge spanning over 25 years. Before transitioning to Southwest Florida real estate, his accomplished career began in the NJ / Philadelphia area having forged his management consulting expertise working with Fortune 1,000 Companies like QVC, Penn Medicine, and CBS Television Studios to enhance their people, processes, and technology. Owner of a real estate investment firm having purchased, designed, renovated, rented, and sold dozens of his own properties, his acquired skills play a significant role in assisting buyers and sellers to visualize the potential of their current or future properties. Gary is an active member of the Bonita Estero Realtors Association. He is exceptionally proud to be associated with Orchid Realty International, where he has access to the latest technology and an extensive wealth of resources, in addition to a growing database of international buyers, sellers, and investors to further assist his clients.
Gary continues to diligently stay abreast of current market trends, and he can quickly assess whether an investment makes financial sense. Excellent negotiation skills and effective communication are the benchmarks of his success. He is organized, patient, and his client’s strongest advocate. His top priority is to provide an incomparable level of service regarding each transaction, from contract to closing.
In his free time, Gary enjoys hiking, boating, and playing with his trusted Aussiedoodle Guddu. He and his wife, Kim who owns Visiting Angels Home Care love giving back to the community and currently live in Estero.
Gary Burmylo brings with him an impressive background of valuable insight and real estate market knowledge spanning over 25 years. Before transitioning to Southwest Florida real estate, his accomplished career began in the NJ / Philadelphia area having forged his management consulting expertise working with Fortune 1,000 Companies like QVC, Penn Medicine, and CBS Television Studios to enhance their people, processes, and technology. Owner of a real estate investment firm having purchased, designed, renovated, rented, and sold dozens of his own properties, his acquired skills play a significant role in assisting buyers and sellers to visualize the potential of their current or future properties. Gary is an active member of the Bonita Estero Realtors Association. He is exceptionally proud to be associated with Orchid Realty International, where he has access to the latest technology and an extensive wealth of resources, in addition to a growing database of international buyers, sellers, and investors to further assist his clients.
Gary continues to diligently stay abreast of current market trends, and he can quickly assess whether an investment makes financial sense. Excellent negotiation skills and effective communication are the benchmarks of his success. He is organized, patient, and his client’s strongest advocate. His top priority is to provide an incomparable level of service regarding each transaction, from contract to closing.
In his free time, Gary enjoys hiking, boating, and playing with his trusted Aussiedoodle Guddu. He and his wife, Kim who owns Visiting Angels Home Care love giving back to the community and currently live in Estero.