Builder Confidence Hits New Record High

There's a reason the National Association of Home Builders has surveyed builders each month for the past 35 years. It's because, when business is good for builders, things are generally good for the housing market and overall economy. In other words, if builders are doing well, things are heading in the right direction. And, if that's true, their most recent Housing Market index is an encouraging sign. That's because, the index – which is scored on a scale where any number above 50 indicates more builders view conditions as good than poor – hit 90 for the first time in its history. That exceeds the previous all-time high of 85, set last month. Robert Dietz, NAHB's chief economist, says the housing market continues to lead the economy. “Another record high for the HMI reflects that housing is a bright spot for the economy,” Dietz said. “In the short run, the shift of housing demand to lower density markets such as suburbs and exurbs with ongoing low resale inventory levels is supporting demand for home building.” (source)

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