Builders Feel More Confident In New Home Market

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As a home buyer or seller, you may not give much thought to how builders feel about the market for newly built homes. But, whether you know it or not, it can make a difference in the price you pay for your house. That’s because, the more new homes being built in your market, the more houses there are for buyers to choose from. And more choices means less competition for available properties and less upward pressure on prices. In short, if builders feel confident, they build more homes, which helps keep prices from spiking. Because of this, the National Association of Home Builders tracks builder confidence each month on a scale where any number above 50 indicates that more builders feel market conditions are good than poor. In October, the index rose four points to 68. Robert Dietz, NAHB’s chief economist, says it’s a good sign that the new home market will continue to grow. “It is encouraging to see builder confidence return to the high 60s level we saw in the spring and summer,” Dietz said. “With tight inventory of existing homes and promising growth in household formation, we can expect the new home market to continue to strengthen at a modest rate in the months ahead.” More here.

 

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