Builder Confidence Hits 11Year High

Dated: 03/22/2017

Views: 25

Builder Confidence Hits 11-Year High

Builder Confidence Hits 11-Year High | MyKCM

In many areas of the country, there are not enough homes for sale to satisfy the number of buyers looking to purchase their dream homes. Experts have long proposed that a ramp-up in new, single-family home construction would be one of the many ways to overcome this inventory shortage.

According to a recent survey conducted by the National Association of Home Builders (NAHB) and Wells Fargo, housing market confidence amongst builders reached an 11-year high last month.

What Does High Confidence Mean for the Housing Market?

In a recent interview, Rob Dietz, Chief Economist and SVP for NAHB, put it this way:

“Higher market confidence will translate into more building and more inventory in 2017. We expect single-family construction to grow 10 percent next year.”

With 2016 marking the best year in real estate sales in over a decade, a 10 percent ramp-up in single-family construction will only aid in making 2017 an even greater year.

According to the latest US Census data, sales of newly constructed homes were up 3.7% over January 2016 as they reached a seasonally adjusted annual rate of 555,000. Dietz went on to comment:

“We can expect further growth in new home sales throughout the year, spurred on by employment gains and a rise in household formations. As the supply of existing homes remains tight, more consumers will turn to new construction.”

Bottom Line

With the weather and the real estate market heating up this spring, there will be a surge of new construction coming to the market soon.

Blog author image

Jeri Patrick

In today’s complex and difficult real estate market you need a professionals who will do whatever it takes to market and sell your home. Jeri Patrick has a team with an established history of succes....

Want to Advertise on this Site?

Latest Blog Posts

Mar 16 2018 5018 1

The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC]Some Highlights: Interest rates are projected to increase steadily heading into 2019. The higher your interest rate, the more money you

Read More

Mar 15 2018 5018 1

Moving up Is MORE Affordable Now Than Almost Any Other Time in 40 YearsIf you are considering selling your current home, to either move up to a larger home or into a home in an area that better

Read More

Mar 14 2018 5018 1

7 Factors to Consider When Choosing A Home to Retire InAs more and more baby boomers enter retirement age, the question of whether or not to sell their homes and move will become a hot topic. In

Read More

Mar 13 2018 5018 1

You Can Save for a Down Payment Faster Than You Think!Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and

Read More