Home builders 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 predict where the market is headed. That’s why the National Association of Home Builders(NAHB) 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 builders see conditions as good rather than poor. In short, home builders are feeling confident because of rising demand and lower mortgage rates. In addition, they’re confident in the future of the housing market. According to the index component which gauges their expectations for the next six months, they expect things to remain largely positive.
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.”