Industry UpdatePosted 09/25/2015
Both builder confidence and new home sales are trending upward, according to the most recent industry figures. Add in a budding economy and you’ve got a recipe for a healthy real estate market that could continue to gain steam as the year closes out.
Recent data from HUD and the U.S. Census Bureau found that newly built, single-family home sales rose 5.7 percent in August, indicating the release of pent-up housing demand as the economy strengthens, consumer confidence grows and mortgage rates remain low.
Additionally, September’s National Association of Home Builders/Wells Fargo Housing Market Index (HMI), which measures builder confidence in the market for newly constructed single-family homes, revealed a one-point increase to a level of 62 – its highest reading in a decade. The index has remained above 50 – the line between positive and negative – since July of 2014.
The only concern is that some National Association of Home Builders (NAHB) members are nervous about the availability of lots and labor, said NAHB Chairman Tom Woods. However, experts still remain optimistic about future growth.
"NAHB is projecting about 1.1 million total housing starts this year,” said NAHB Chief Economist David Crowe, in a press release. “Today's report is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year.”
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