Stable job growth—buttressed by a strong economy—and a housing shortage has led to a surge in homebuilder confidence. Homebuilder confidence hits the highest level in a decade, in large part because of record lows in unemployment, improved wages, and reduced mortgage rates.
Why the Boom in Confidence?
Confidence has swelled because of the housing rebound that began last spring—along with strong numbers in multiple sectors. Unemployment has dipped to a 50-year low, leading single-family households to look for new homes. This, coupled with lower mortgage rates, has increased demand for homebuilding significantly.
Marked by a five-point jump to 76, homebuilder confidence hits the highest level in a decade, and more. In fact, confidence has hit its highest mark since 1999. Regionally, the South mirrored the national average, bumping up one point to 76. The National Association of Home Builders and Wells Fargo Housing Market Index consider anything north of 50 as a positive sign.
Better Days Ahead
The housing index climbed 20 points in 2019, seeing its best numbers since 2012. A score of other metrics, including buyer interest, saw jumps as well. Buyer interest enjoyed a four-point uptick; sales conditions leapt a little farther, rising seven points.
Even with a somewhat arrested manufacturing climate, the U.S. Labor Market has remained strong on the whole. Homebuilder confidence hits the highest level in a decade—because of this steadfast strength through 2019. Touted as the “the hottest part of the economy,” the housing market is expected to continue to grow. Further construction and sales are anticipated because of these encouraging trends.
Summary
All in all, these numbers reflect a promising housing market. Let us help you find your next new construction home in the Lake Martin, Auburn, or Opelika areas! Looking to sell in this buzzing building boom? Ryan Roberts can help with that too. Contact Ryan Roberts here to learn more!
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