While much of the country remains mired in a housing slump, the Florida real estate market, and by extension, the highly desirable South Florida real estate market seem to be showing signs of recovery. Cabot Homes Group is perfectly positioned to continue helping our clientele exploit this growth trend.

Sales of existing single-family homes in Florida rose 23 percent in second quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors. Over 43,000 existing homes sold statewide in 2Q 2009 compared to 35000 in the same time frame last year. It marks the fourth consecutive quarter that Florida has seen higher existing year-to-year home sales.

In spite of the challenges with the economy, most people – 83 percent – still believe that buying a home is a good financial decision, according to a recent survey from the National Association of Realtors. Many homebuyers are realizing that this is the time to buy – with a good selection of housing inventory, affordable pricing and low mortgage rates.

Three-fourths of those responding to the 2009 National Housing Pulse Survey said they think now is a good time to purchase a home, a number that has increased steadily the past two years. However, providing solid financing options for homebuyers is key to returning stability to the housing market. Cabot Homes Group understands this and has strategic alliances with many partners providing a wide array of services to its clients.

Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.03

By staying abreast of the latest housing trends and positioning itself in the hot South Florida real estate market, Cabot Homes Group feels confident we are the best option for those entering the housing market, whether buying or selling.

In another encouraging sign that the nation’s deep housing recession was beginning to bottom out, construction of new homes jumped in May by the largest amount in three months.

The Commerce Department said Tuesday that construction of new homes and apartments jumped 17.2 percent last month to 532,000 units. That was better than the 500,000-unit pace that economists had expected and came after construction fell in April to a record low of 454,000 units. Cabot Homes Groups has seen signs of this in the Fort Lauderdale area.

The better-than-expected rebound in construction was the latest sign that the prolonged slump in housing may be coming to an end, which would be good news for the broader economy.

Even with the encouraging news, analysts don’t expect a quick rebound in housing, since the economy is still shedding jobs and home prices are falling in many places, making people hesitant to commit to buying a new home. Yet at Cabot homes we’ve been able to help savvy clients take advantage of the inherent opportunities afforded by this market.

The 17.2 percent rise in housing construction for May still left activity 45.2 percent below where it was a year ago. Its not unreasonable, however, to think that the highly desirable Fort Lauderdale real estate market would see a disproportionate amount of growth compared to the rest of the state or country at large. That means more opportunity for smart buyers to take advantage Pre-construction opportunities and deals that usually exist in a hesitant market. That’s why Cabot Homes Group believes it’s important to have long-standing community relationships and to be extraordinarily knowledgeable about the areas you do business in. We believe it makes a difference for our clients. At Cabot Homes Group we are optimally positioned and have the all the tools required to guide our clients to successfully accomplish their real estate goals.

Index of 20 major cities rises on a monthly basis for the first time since July 2006, hinting that the worst of the declines may be over.

The value of U.S. homes grew on a monthly basis in May for the first time in nearly three years, according to 20-city index released Tuesday.

The month-over-month increase was 0.5%, according to Standard & Poor’s and economists Case-Shiller. It was the first increase in the monthly index since July 2006.

The Cabot Homes Group is encouraged to see movement in a positive direction. To our clients looking to buy a home we see an opportunity to purchase at historically low prices with some confidence that we are on the upswing in pricing.

The improvement in the index was as broad as it was deep, with 13 metro areas showing gains. While Fort Lauderdale and Miami Metro aren’t specifically referenced in the report, The Cabot Homes Group has seen similar growth in this highly desirable corridor as foreclosures have stabilized and Cabot Home Group clients have taken advantage of historically low prices and mortgage rates.

The report added to the list of positive housing market indicators. These include rising new home sales, increased home building and increased pending sales.

Its important to note that this is only a single month and note a trend. But prices have fallen so far in so many places that it’s drawing people back into the market. So much so that Cabot Homes Group is optimistic that those sitting on the sidelines will be encouraged by this good news.

So what’s behind the good news?

Stabilizing the housing market has been a primary goal of Washington policy makers. To that end Congress has tried to stimulate home buying by creating a temporary tax credit of $8,000 for people who have not owned a home for at least three years.

Also, interest rates were very low in May, which also could have helped the housing market. The rate for a 30-year mortgage was well below 5% during the month, which encouraged buyers and drove up demand.

Its encouraging to think we could be coming to the end of the slump, at least as far as the decline in housing prices goes. If that’s the case it means there are some real home bargains on the market now. If your renting or waiting to buy now maybe the time to talk to your Cabot Homes Group associate about your share of the American dream.