The real estate market tends to slow down in the fall and winter. The holidays and harsher weather dampen demand from homebuyers, so spring and summer are far more popular with home shoppers. Similarly, home builders similarly get more work done in the warmer months.
A healthy job market and the approaching spring sales season has spurred renewed optimism among housing professionals, according to the National Association of Home Builder’s Housing Market Index. The index , which measures builder confidence in the market for new homes, saw a four point rebound in February and is now at 62 on a scale where any number above 50 indicates that builders on average view conditions as positive.
Randy Noel, NAHB’s chairman, says expectations for the months ahead have turned hopeful. Ongoing reduction in mortgage rates in recent weeks coupled with continued strength in the job market are helping to fuel builder sentiment, Noel said. In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season.