While all home builders have taken hits from the housing slump, Hovnanian is facing what one of its top executives on Monday called America’s “worst” housing market: Fort Myers, Florida. (more…)
Ara Hovnanian (pictured, below) is the 49-year-old CEO of Hovnanian Enterprises. He recently talked about the Florida real estate market, among other issues. Here is the interview, paraphrased …
As interest rates inch up, a handful of owners are considering Florida mortgage refinancing. If this trend continues, many more might also look into purchasing news houses.
Until that occurs, however, builders need to scale back.
Here’s evidence that they are: New home permits in September dropped 61 percent in Fort Myers from 2005’s record high, returning to typical levels last seen in 2003, according to the county’s Community Development Department.
The county issued 458 single family home permits last month, compared to 1,181 in September of 2005. Until demand for Florida home loans returns to the levels it was seen at over the last five years, it’s a good idea for developers to be patient in this manner.
The table below shows month to month data for the last four years for unincorporated Lee County, the City of Bonita Springs and the Town of Fort Myers Beach.
While some insiders believe this is an example of a market in a downswing, others just consider it a return to regular Florida home mortgage levels. The building rates of the last few years were record highs.
