Builders Optimistic About New Home Market

The National Association of Home Builders conducts a survey each month to measure builders' confidence in the market for newly built homes. Because a builder's business depends on being able to accurately gauge consumer interest in buying homes, the survey is considered a good indicator of housing market health. In January, the NAHB's Housing Market Index hit 75 on a scale where any score above 50 indicates more builders view conditions as good than poor. Greg Ugalde, NAHB's chairman, says conditions are favorable and should lead to more gains this year. “Low interest rates and a healthy labor market combined with a need for additional inventory are setting the stage for further home building gains in 2020,” Ugalde said. This is good news for potential home buyers, as added for-sale inventory would help moderate price increases and provide more options for buyers to choose from. Regionally, the index found builders most optimistic in the West, where three-month moving averages rose one point to 84. The Northeast and Midwest also saw gains, while the South remained unchanged at 79. (source)

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