Builder Confidence Spikes In June As Housing Industry Rebounds
As the housing industry continues to surge, so too has builder confidence in the market for newly-built single-family homes. The National Association of Home Builders and Wells Fargo Housing Market Index (HMI) reported a 21 point jump in builder confidence for newly-built single-family homes in June 2020.
The NAHB survey has been conducted for 30 years and gauges builder perception for the next six months. The HMI reported gains across all indices, including current sales conditions, which jumped 21 points to 63 points. The index that measures sales expectations over the next six months also spiked 22 points to 68 points.
“As the nation reopens, housing is well-positioned to lead the economy forward,” said NAHB Chairman Dean Mon. “Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.”
NAHB Chief Economist Robert Dietz said: “Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market. Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods. At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market.”
Click here for more information on the National Association of Home Builders and Wells Fargo Housing Market Index.