Home Builders Respond to High Demand
Aug 17, 2020
The NAHB released its Housing Market Index (HMI) report this morning with its highest rating since 1998. The HMI is based on a monthly survey of NAHB members, “designed to take a pulse of the single-family housing marketing.”
“Low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs,” said NAHB chairman Chuck Fowke.
Builders across the nation are responding to the high-demand for single-family homes. Builder confidence is highest in the Western states with an HMI score of 88 out 100 – the highest ever reported by the NAHB.
“Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast on single-family starts, which are now projected to show only a slight decline for 2020,” said NAHB chief economist, Robert Dietz.
The downside to this sharp recovery in housing starts is the increase in lumber prices, which have more than doubled since mid-April. It’s unsure how this will affect sales, but low interest rates are helping with consumer confidence and how much they can afford.
Intercap Lending is helping homebuyers purchase new-built homes throughout the nation, particularly in states like Utah, California, Nevada, New Mexico, and Arizona. Contact an Intercap Lending loan officer for new construction loan options.