Builders Expect New Home Sales To Grow
If anyone knows the new home market, it's builders. After all, their business depends on demand for newly built homes. That's why the National Association of Home Builders surveys them monthly to gauge their perception of the market today and over the next six months. According to their most recent survey, builders are optimistic, even setting a post-recession high for expectations for future sales. “The HMI gauge of future sales expectations has reached a post-recession high, an indicator that consumer demand for housing should grow in the months ahead,” Robert Dietz, NAHB's chief economist, said. “With ongoing job creation, increasing owner-occupied household formation, and a tight supply of existing home inventory, the single-family housing sector should continue to strengthen at a gradual but consistent pace.” What does this mean for the overall market and for home buyers this year? Well, if the number of new homes being built rises, that will help take some upward pressure off home prices. That means, more new home sales may provide a significant benefit – and not just for home builders. More here.