Mortgage

Northeast Florida sees big spike in new home building permits compared to last year

Northeast Florida sees big spike in new home building permits compared to last year
Written by Publishing Team

Jacksonville, Florida. Low mortgage rates and strong home buying are fueling a steady boom in the housing market.

“The inventory has to be set up somewhere so the builders can really benefit from the lack of resale inventory and all the land that Jacksonville has to offer,” said real estate agent Cole Slate.

The housing industry has generated another huge boost.

According to the National Association of Realtors, sales of new single-family homes jumped 12.4% in November.

This is the fastest pace in seven months.

Sales continued to rise in every region of the country, with the exception of the Midwest. The South saw a rise of about 3% last month.

Slate says he sees it here in Northeast Florida.

Slate says four counties in this area: Duval, St. John’s, Clay, and Nassau feel the demand in a certain way.

This significant change is noted by the permits being withdrawn for the construction of new homes.

According to the Northeast Florida Builders Association, as of November 2020, 11,343 permits have been withdrawn. As of November 2021, there were 14,700 permits.

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That’s a difference of 3,357, which is a 29% increase.

“That’s a lot,” says Slate, who owns Slate Real Estate in St. John’s. “What’s going on with the inventory shortage at the moment, the demand for our region is not going anywhere.”

Mortgage rates are expected to be higher next year as the Federal Reserve gets rid of the bond purchases it has been making every month since the pandemic began.

“I don’t think it’s going to do anything for the demand in the Northeast Florida real estate market, but it could hurt people buying for energy price points,” Slate said.

Those looking for a new home should be prepared to stay in a competitive field for the time being.

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