Builders don’t build homes, if they don’t feel there’s a market for them. That’s why, the National Association of Home Builders’ Housing Market Index – which measures builder confidence in the market for newly built single-family homes – is considered an important indicator. After all, if builders are feeling good about selling new homes, they will build more, which is good for the market and overall economy. The index, which the NAHB has conducted for 35 years, is measured on a scale where any number above 50 indicates more builders view conditions as good than poor. In October, it rose to 83, which is an all-time high. It’s also only the second time it’s been over 80. The previous time was last month. Chuck Fowke, NAHB’s chairman, says traffic is high and demand is strong. “Traffic remains high and record-low interest rates are keeping demand strong as the concept of ‘home’ has taken on renewed importance for work, study, and other purposes in the COVID era,” Fowke said. Regionally, home builders in the West were most optimistic, followed by the Northeast, South, and Midwest. (source)
Builder Confidence Sets Another All-Time High
