Builder confidence up in August amid increased buyer demand
Posted on Thursday, August 15, 2013 at 12:06:57 PM
Builder confidence for single-family homes increased in August, according to recent data released in the National Association of Home Builders/Wells Fargo Housing Market Index.
This month is the fourth in a row with improving numbers, and it appears that homes are in demand. Residential financing is one possible factor, as affordability is a priority for buyers.
"Builders are seeing more motivated buyers walk through their doors than they have in quite some time," said NAHB chairman Rick Judson. "What's more, firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market."
The HMI covers several components, and two - sales conditions and sales expectations - reported increases. Conditions improved three points to 62, while expectations rose one point to 68. The other statistic was prospective buyer traffic, and that didn't change from July.
Any number above 50 indicates that more people view that aspect as a positive than a negative, and August's HMI is a good sign for the overall housing market.
Buyer demand is high as well, according to the National Public Radio. However, some people are worried about potential restrictions to growth, such as student debt, tough job market and smaller families.
Ideally, residential financing may help overcome a number of concerns, and people will be able to buy new homes.