Home Builders are Building
Home Builder Confidence Hits 11-Year High
In many areas of the country, there are not enough homes for sale to satisfy the number of buyers looking to purchase. One way to remedy this inventory shortage is a rise in new, single-family home construction.
According to a recent survey conducted by the National Association of Home Builders (NAHB) and Wells Fargo, housing market confidence by builders reached an 11-year high last month.
What Does High Confidence Mean for the Housing Market?
Rob Dietz, Chief Economist and SVP for NAHB, put it this way:
“Higher market confidence will translate into more building and more inventory in 2017. We expect single-family construction to grow 10 percent next year…We can expect further growth in new home sales throughout the year, spurred on by employment gains and a rise in household formations. As the supply of existing homes remains tight, more consumers will turn to new construction.”
With 2016 marking the best year in real estate sales in over a decade, a 10 percent increase in single-family construction will make 2017 an even better year.
Real Estate Bottom Line
An increase in new construction will help ease some of the inventory shortage the market is experiencing. Does a new home sound appealing to you?