- March 8, 2025
After years of stagnation in the housing market, home loans and house starts are on the rise, which, to many, is indicative of an impending upswing in the economy.
“We’re starting to see banks lend more,” said Garry Lubi, senior vice president of Prosperity Bank. “We’ve significantly expanded our residential lending over the past year.”
Specifically, Lubi estimates that Prosperity Bank is granting home loans at 10 times the rate it was this time last year.
Construction has traditionally been the main driver of Flagler County’s economy, so in spite of continued efforts to divserify the area's economy, a bolstered housing market is nonetheless considered a signpost for economic recovery.
Bruce Page, president and CEO of Intracoastal Bank said he, like Lubi, has seen an increase in local home lending activity.
“Clearly, the real estate market has bottomed,” he said. “We’re starting to see increases in construction activity, as well as we see the resale market is up; housing inventory is down; prices are increasing. This is, hopefully, the start of a more sustained recovery.”
The activity stems largely from new home starts, said Ramona Zavacky, licensing manager for Flagler County. So far this year, the county has issued 40 permits for single-family homes in the county — more than half of the 75 permits issued for single-family homes in the county for all of 2012. As of March 28, 2012, Flagler County had issued just 13 such permits.
Palm Coast issued 17 residential permits in February, as compared to 12 issued in February 2012. March of this year saw 16 permits for single-family homes, an increase from eight in March 2012.
Zavacky, too, said housing starts is a good meter for economic recovery.
Despite the increase in housing starts, data from the Flagler County Association of Realtors shows little change in the number of homes sold, although there has been a slight increase in the average price of homes purchased.
In February, there were 157 closures on home sales statewide. The year before, February brought 167 home sales. The average price increased by 3.8%, from $150,791 in 2012 to $156,460 in 2013.
However, pending sales are up: The association’s report shows 298 pending sales statewide for February, compared to 203 a year previously — a 46.8% increase.
Over that same stretch of time, housing inventory has declined. Compared to about 1,500 active listings in February 2012, the same month in 2013 saw about 1,000 listings in February 2013.
Both Lubi and Page said they are hopeful the trend will continue.
“When you drive around town, look at the amount of new construction that you’re seeing,” Lubi said. “It probably hasn’t been like that since 2006 or 2007. … I’m hearing more optimism out of homebuilders in particular. We’re actively seeking both commercial loan and residential loan opportunities for financing and reconstruction.”
To facilitate that, Prosperity is paying the first $4,500 in closing costs to lenders.
“We’re trying to send a signal to the market that we want to do those loans,” Lubi said.
Increased activity aside, the market is far from where it was at its peak prior to the recession.
“Yes, housing starts are up, but that rise is relative,” Page said. “But I believe the fundamentals are in place for an overall economic recovery. In our local economy, of course, housing is extremely important. I’m hopeful that the increase will build momentum. It’s like a snowball going down the mountain, and things will only continue to grow bigger and faster.”
— Brian McMillan contributed to this report.
