According to Florida Trend, the revenue at the 150 largest public companies and the 200 largest private companies in the state rose more than 8.5%, which is a reflection of the improving economic climate in Florida. The Florida Trend article went on to state that new home constuction continues to lag due to lower resale prices and “a glut of supply”. Of the 13 private companies showing the biggest drop in the rankings, 10 are real estate related.
Consistent with that assessment, new construction simply cannot compete with resale pricing here in the Destin and Emerald Coast real estate markets. You can buy a great home today for much less than the replacement cost, i.e., cost of construction.
For information on short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com or email us at smith@realtor.com