Home sales expected to be strong in spring

Homebuilders in Southwest Florida are preparing for a bustling spring, thanks to large numbers of tourists and seasonal retirees who are scouting for homes.

The industry's busiest months are March and April, and with homebuilding activity last year at its best level since the Great Recession, most industry observers expect that recovery to continue into the crucial spring months.

30>Unusually cold weather in the northern states this year has clipped purchases compared with last years, builders acknowledge and records show. But now, builders say more potential buyers than usual are touring their models, visiting their sales centers and mapping sites for potential homes.

If the interest holds, it could translate into more purchase contracts and higher profit margins.

"So far, we're seeing almost the exact same trend we saw last year, and we're certainly meeting our budget," said Lee Wetherington, owner and founder of Lee Wetherington Homes. "We're seeing a shift, too, where the buyers are paying cash, and they're spending a little more money. It's just loosened up a bit."

Contractors pulled 222 single-family building permits in February to build new homes in unincorporated Sarasota and Manatee counties. That was up nearly 3 percent from the start of the year, but off from the 2013 pace by 10 percent, government records show.

New home construction was most active in Manatee, where builders pulled permits for 144 new homes in February, 16 percent higher than the January total but flat from permits issued during the same month a year ago.

In Sarasota, builders pulled 78 permits last month, down 15 percent from January and 28 percent compared with last year.

Permits indicate homes expected to begin the construction in 30 to 90 days. They are considered the best predictor of local construction activity.

February's numbers come in the wake of the best year for homebuilders since the region's housing bubble burst seven years ago.

Homebuilders in Southwest Florida pulled permits for 3,009 single-family homes in unincorporated Sarasota and Manatee counties in 2013, an increase of 42 percent from 2012, a 96 percent hike from 2011 and double the amount from 2010, when 1,582 new single-family permits were issued, records show.

Most builders in Southwest Florida expect that recovery to continue in 2014, especially during the peak tourism months.

"The trends we have always seen historically are now back in place, where there's a surge from November to April because that's when we have people out there looking and here visiting," said Alan Anderson, executive vice president of the Manatee Sarasota Building Industry Association. "With spring coming, we're expecting to wrap up that season pretty well."

The influx has even spread to the luxury market, with buyers customizing new luxury residences after years of lackluster interest because of foreclosure discounts.