Builders Optimistic After Demand Rebounds
If you want to know how the housing market is doing, ask a home builder. Their livelihood depends on knowing what, where, and when people are ready to buy a home. So they're generally a pretty good indicator of where things are headed. That's why the National Association of Home Builders conducts a monthly survey asking builders to score the market on a scale where any number above 50 indicates more builders view conditions as good than poor. In June, their Housing Market Index surged 21 points to 58. Robert Dietz, NAHB's chief economist, says home builders are seeing signs of momentum. “Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market,” Dietz said. “Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods. At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market.” Among index components, those measuring buyer traffic and expectations for the next six months saw the biggest improvement.