Builders Optimistic About Affordable New Homes

Home builders wouldn't build new homes unless there was a demand for them. Knowing how many buyers are looking and what they're looking for is part of their job. Which means, they're a pretty reliable source if you're looking for information about what's happening in the real estate market. So what are home builders saying about this spring and summer? Well, the National Association of Home Builders' Housing Market Index – which gauges builders' confidence in the market for newly built homes – shows builders are optimistic about this year's market and are finding that, more so than in past years, new homes in affordable price brackets are selling well. Robert Dietz, NAHB's chief economist, says that's a good sign. “In a healthy sign for the housing market, more builders are saying that lower price points are selling well, and this was reflected in the government's new home sales report last week,” Dietz said. “Increased inventory of affordably priced homes – in markets where government policies support such construction – will enable more entry-level buyers to enter the market.” This is encouraging, since adding to the number of homes for sale in affordable price ranges will help balance the market and offer more buyers choices at a price that fits their budget. More here.

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