FORT MYERS, Fla- There is a shortage of new home construction in Southwest Florida and WINK News Real Estate contributor Denny Grimes says it's a necessary sign of recovery.
98 percent of the homes for sale right now are used, and on average 15 years old. That means only 2 percent are new. It's not much but more than it used to be. Builders sold off their inventory when the market crashed and then sat on the sidelines as it bottomed out. Now Grimes says, they are slowly coming back in established neighborhoods and building new homes, which buyers are starting to look for.
New construction means different things for builders, buyers and the economy. Grimes says the signs though point to a rebound and higher prices. It's why he announced on Wednesday morning he doesn't think prices will ever be as low again as they are now.