Home Builder Confidence Hits All-Time Record

Dated: September 23 2020

Views: 14

Home Builder Confidence Hits All-Time Record

Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of prospective buyers of new homes.

As the following chart shows, confidence dropped dramatically when stay-in-place orders were originally mandated earlier this year. Since then, it has soared back.Home Builder Confidence Hits All-Time Record | Keeping Current MattersLooking at the three-month moving averages for HMI scores, confidence increased in every region of the country:

  • The Northeast increased 11 points to 76
  • The Midwest jumped 9 points to 72
  • The South rose 8 points to 79
  • The West increased 7 points to 85

Confidence Is Validated by the Numbers

This confidence is definitely warranted. According to a recent NAHB report, single-family housing starts increased 4.1% to a 1.02 million annual rate, and single-family permits increased 6% to a 1.04 million unit rate, meaning newly constructed homes are on the rise.

A separate report from the Mortgage Bankers Association (MBA) shows mortgage applications for new home purchases increased by 33.3% compared to a year ago. Joel Kan, Associate Vice President of Economic and Industry Forecasting at MBA, commented on the numbers:

“The housing market continued to exceed expectations in August, as housing demand for new homes stayed strong and the job market continued to recover…The new home market has maintained its path of recovery throughout the summer, and record-low mortgage rates and households seeking more space will likely continue to drive demand into the fall.”

Bottom Line

If you’re thinking about putting your house on the market but are afraid you may not find a home to buy, speak with your local real estate professional about new construction opportunities in your area.

Latest Blog Posts

Homebuyer Tips for Finding the One

Some HighlightsThe best advice carries across multiple areas of life. When it comes to homebuying, a few simple tips can help you stay on track.Because of increased demand, you’ll

Read More

Your Journey to Homeownership

Some HighlightsWhen it comes to buying a home, there are a number of key milestones along the way.The process includes everything from building your team and understanding your finances to&

Read More

5 Tips for Making Your Best Offer

5 Tips for Making Your Best OfferIn today’s sellers’ market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses

Read More

Home sales slow as prices continue to soar in New York State

View New York September Home Sales ReportThe “Skinny Video”Albany, NY – October 21, 2021 – The median price of homes has continued to climb for 17 consecutive months in year

Read More
Fair Housing Icon NY Fair Housing Notice