Demand is rising, supply is tight, and homebuilding is off to the races in Flagler and Volusia counties in Florida. That's according to a report in the Daytona Beach News-Journal (see "Home construction in Volusia, Flagler at highest level in years," by Bob Koslow).

"In Volusia County, homebuilders were issued 635 new home construction permits through June 30, according to the Volusia Building Industry Association, which gets its data from HBW, Inc., a DeBary company that tracks building permit activity," the paper reports. "That's up 25% from January through June of last year and up 95.4% from the same period in 2012."

"In Flagler County, homebuilders were issued 251 new home construction permits for the first half of the year, according to the Flagler Home Builders Association," the News-Journal reports. "That's up 25.5% compared to the same period a year ago and up 139% from the first two quarters of 2012."

In the small seaside town of Flagler Beach, there's a mini-boom. Building official Rick McFadden told the paper, "When I came on board in September 2011, there was one house being built. Now there's 29. It's a major turnaround."