This week the Department of Commerce announced the home sales in June had risen to the highest levels in five years. Experts believe that these gains in residential construction are an indicator of economic expansion for the second half of the year. The pace of home construction is up 8.3% to a pace of 497,000, a rate which has not been reached since May 2008. This growth is not anticipated to diminish considering employment is continuing to grow and the mortgage rates are still very low, which increases builder confidence and increases in construction similarly build the employment market. While mortgage rates have increased in the first half of the fiscal year, Federal Reserve Chairman Ben Bernanke said that they would reduce increases in borrowing costs if it negatively impacted the demand.

Throughout the country, there is also a shortage of available land for sale, especially in urban areas, such as South Florida. Across South Florida, we are seeing countless new developments and they are selling out in record time. Not only has the domestic demand increased, but our international market is still incredibly strong. There are over 160 planned developments and that number is growing every day. Porsche Design Tower, a massive development in Sunny Isles with price tags starting at $4 million, is already 70% sold out in preconstruction. The lending structure on preconstruction projects in South Florida differs widely from the last housing boom, and it seems South Florida has learned its’ lesson. Preconstruction pricing structures are geared now towards cash buyers, who are prequalified. If you are looking to buy a preconstruction luxury condominium, we are happy to assist in your acquisition.