Home builders are gaining confidence…
Great news for the economy and real estate is that home builders are gaining confidence in current and future market conditions for new homes. Sadly, they are also seeing below-average foot traffic in new homes. Which might be due to the bargain prices that are available for existing homes. And I am not just talking about foreclosures!
The May 2013 National Association of Home Builders (NAHB) /Wells Fargo Housing Market Index (HMI) increased by three points to 44 compared to 41 back in April 2013. The HMI measures builder confidence in current sales conditions for newly built homes, buyer foot traffic in new homes and builder expectations for future sales conditions.
Builder Confidence In Future New Home Sales Highest Since February 2007
The HMI reading for current sales conditions for newly built homes rose from 44 to 48. The reading for buyer foot traffic in new homes rose from 30 to 33, and builder confidence in future sales of new homes rose from 52 to 53, which is the highest reading posted for builder expectations since February 2007.
A reading of more than 50 indicates that more builders consider housing markets good than bad.
NAHB Chairman Rick Judson said:
Home builders are facing challenges including rising costs for building materials, lots and labor as supply chains recover from the recession. Builders took note of “urgency” among home buyers wanting to take advantage of low mortgage rates, but buyers are facing a dwindling supply of available homes.
Regional Housing Market Index Mostly Unchanged
HMI readings for three of the four geographical regions used in the HMI survey of builders remained unchanged with the Northeast at 37, Midwest at 45 and South at 42. The regional HMI figures are calculated as a three-month rolling average.
While this news is more indicative of the housing market and economy for the entire US or across HUGE areas such as the South, it is still good news. With builders feeling confident about the future and poised to ramp up their home building efforts, it is a great time to consider buying or selling a home in Anderson South Carolina!