Confidence In Housing Hits A High
If you want to know how the housing market's doing, ask a builder. After all, it's their business to sell homes. So they have to have a good feel for whether or not people are interested and ready to buy.
That's why the National Association of Home Builders conducts a monthly survey that asks builders for their view of the market, current buyer traffic, and expectations for the next six months.
Their Housing Market Index is considered a good barometer of housing health and, in particular, interest in the market for newly built homes. In September, it rose to its highest level since last October. In short, builders are feeling confident in the market.
Low interest rates and solid demand continue to fuel builders' sentiments even as they continue to grapple with ongoing supply-side challenges that hinder housing affordability, including a shortage of lots and labor.
In other words, despite affordability concerns, builders are optimistic that Americans are ready to buy. In fact, the index component measuring current sales conditions was up two points to 75 on a scale where any number above 50 indicates more builders view conditions as good than poor.