Robust Economy and Housing Demand Fuels Builder Confidence This October
Builder confidence is up 68% this October, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Since June, confidence amongst new-home builders has sustained in the high 60s, which is a testament to the strength of the housing market.
According to NAHB Chairman Randy Noel, this confidence is due in large part to a strong economy and great demand for new-construction homes.
“Builders are motivated by solid housing demand, fueled by a growing economy and a generational low for unemployment,” said Noel. “Builders are also relieved that lumber prices have declined for three straight months from elevated levels earlier this summer, but they do need to manage supply-side costs to keep home prices affordable.”
The HMI index also measures current sales conditions, including builder sales perceptions and buyer traffic. For October, builders reported that current sales conditions have increased one point to 74, while the metric for buyer traffic rose four points to 53.
With a robust economy, increased demand, low unemployment, and surging homebuyer traffic, now is the time to buy a new-construction home before the market goes even higher.