- November 23, 2024
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There were three times as many new homes built in Ormond Beach the third quarter of this year, compared to last year. But that's not the only local market showing big improvement.
BY WAYNE GRANT | STAFF WRITER
Terry Rakes, salesman at T & M Floors in Ormond Beach, has noticed a change in the local housing market. And he's liking what he sees.
“People are buying oceanfront and riverfront high-end homes and updating them,” he said. “But it’s across the board. It’s happening in the everyday neighborhoods, too.”
Just look at the numbers, owner Michell Padgett says. "We doubled our business."
Not only are people upgrading existing homes, she said, they are also improving new homes.
But this growth isn't only in the flooring business. The housing industry as a whole, starting with new-home builds, is showing signs of life, according to third-quarter statistics. New-home construction is on the rise, and local businesses are reaping the rewards, throughout Ormond Beach, the county and beyond.
In Volusia County, there were 382 permits, totaling $116.3 million, issued for new homes in the third quarter of 2013, compared with 239 in the third quarter of 2012, with a value of $68.8 million. This figure was released by the Volusia County Economic Development Division at its quarterly meeting Nov. 8, at the Daytona Beach Municipal Airport.
In Ormond Beach, there were nine residential permits in the third quarter of 2012 and 29 in the third quarter of 2013.
In Flagler County, according to the Flagler Home Builders Association, there were 123 permits issued for new homes for the third quarter of 2013, compared with 61 in the third quarter of 2012. Jason DeLorenzo, government affairs director for the association, said there were 153 permits for single-family residential units in 2011 for the county, 243 in 2012 and, so far this year, there have been 363 permits issued.
DeLorenzo said homes are being built in Palm Coast subdivisions, as well as areas platted by the city's original developer, ITT. And the new construction, he added, creates a lot of work for a lot of people.
“There’re a lot people in and out of a house when it’s being constructed,” he said, adding that if you add up all the man-hours it takes to build a house, it’s the equivalent of three people being employed for a full year.
DeLorenzo said that, after the real estate bust, many construction workers in Flagler County had to take jobs in other fields. Now, many are returning to the trade.
“As construction returns, you can expect people to return,” he said. “It makes sense for them to bring their business out of mothballs and start back to work."
Sandy Bishop, executive director of the Volusia Building Industry Association, agrees.
“When a house is built, there are between 45 and 52 contractors,” she said. There are architects, draftsmen, framers, plumbers, carpenters, electricians, block layers, decorators, window treatments and more, she said. After the home is built, insurance agents, furniture sales people and real estate agents go to work.
“When you build a home, you touch so many jobs and lives,” she said. “Many jobs can be done by from another city by computer but, in construction, they have to be there, (be local)."
Fringe business: Rising with the tide
New homes aren't always move-in ready, according to Padgett, who has seen homeowners investing not only upfront but after contracts are signed, too, in upgrades.
“People are buying new homes and replacing the floors, taking out the construction grade,” she said.
Compared to the "boom" years, people seem to have more a permanent attitude about their homes, she's noticed.
“They are thinking more for the long-term,” she said. “Some buy a home and say they are going to die there.’
She said this attitude toward permanence is reflected in the hard surfaces they are buying for flooring, such as tile and hard wood. “They want to invest in something that will last,” she said.
They also want to keep utility costs down.
“Business has been robust,” said Bill Gallagher, of Solar-Fit, a company that installs solar-heating/cooling systems in both Palm Coast and Ormond Beach.
He said business has picked up almost 20% over the past year, a nice rebound from the slowest points of the recession. To Gallagher, this looks like recovery.
The company is installing systems on new and existing homes, due to concerns over rising energy costs.
Tom Gilbert, of East Coast Pools and Spas, in Ormond Beach, has seen a drastic increase in the past year, as well — a 50% revenue spike.
To keep up with the work, he has hired four new workers. This year, his company installed 58 pools in Volusia County, and about four out of every 10, he says, was installed in a house just recently purchased.
“They say they saved so much money they can (now) afford a pool,” he said.
He also said some people have been waiting for the economy to improve before installing a pool. But they are now feeling confident enough to spend.
If you build it, they will buy
The positive construction figures also come on the heels of recent reports of real estate growth,
According to the Daytona Beach Area Association of Realtors, which covers East Volusia, from Ormond Beach south to New Smyrna Beach, statistics showed increases from September 2012 to 2013. Listings went from 902 to 1,061; sales went from 422 to 518; and average prices increased from $171,389 to $177,425.
In Flagler County, from September 2012 to September 2013, listings went from 246 to 300; sales went from 165 to 169; and average prices climbed from $166,242 to $180,168.
New homes, new jobs
The unemployment rate for Volusia County dropped from 9% to 7.2% in September, compared to one year ago. The state of Florida's unemployment rate also dropped 8.9% over the same period and, nationwide, the drop was from 8.1% to 7.5%.
In Flagler County, unemployment dropped from 12% last July to 10.4% this July, according to the U.S. Bureau of Labor Statistics.
The number of local homes in foreclosure is also dwindling. In the third quarter of 2012, 900 homesteaded residences went into foreclosure in Volusia County while, in the third quarter of 2013, there were less than 300.
Permits on the rise
Commercial permits in Volusia County, which includes businesses as well as multifamily housing, rose from 20 to 30 in the third quarter of 2013, compared to last year. The total value of commercial permits rose from $44.8 million to $161.7 million, but about $100 million of this year’s permitting value was due to the construction at the Daytona International Speedway, according to Bishop.
There were four commercial permits issued in the third quarter of 2012, in Ormond Beach, and only three in the third quarter of 2013.
