Builders Say Demand Is High But Costs Are Rising
Homebuilders are on the frontline of the housing market. Their business depends on knowing what buyers want and when they want it. That's why the National Association of Home Builders tracks builder confidence in the market for newly built homes. When builders are optimistic about buyer demand, they build more homes, which helps balance the market and makes conditions better for all home buyers. The results of the NAHB's most recent survey shows builders are confident in the market and reporting solid demand. In fact, on a scale where any number above 50 indicates more builders view conditions as good than poor, April's Housing Market Index scored a 63. But, despite the strong showing, Robert Dietz, NAHB's chief economist, says a shortage of construction workers and buildable lots is causing housing costs to rise. “Ongoing job growth, favorable demographics, and a low-interest rate environment will help to modestly spark sales growth in the near term,” Dietz said. “However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market.” More here.