Builders See Growing Demand For Smaller Homes
Homebuilders have a unique perspective on the housing market. Their business depends on knowing when and where people will be looking for homes. Because of this, they have to be able to read where the market is headed. That's why the National Association of Home Builders conducts a monthly survey measuring their confidence in the market for newly built homes. In August, the NAHB's index scored a 66 on a scale where any number above 50 means more builders see conditions as good than poor. In short, home builders are feeling confident because of rising demand and lower mortgage rates. And, according to the index component gauging expectations for the next six months, they expect things to remain largely positive, despite remaining affordability concerns. Robert Dietz, NAHB's chief economist, says interest in new homes is particularly strong among buyers looking for a smaller more affordable home. “Although affordability headwinds remain a challenge, demand is good and growing at lower price points and for smaller homes.” More here.