Last week, the National Association of Home Builders (NAHB) reported his Housing Market Index (HMI) hit historical maximum in the 35-year history of the series with a score of 83. The index measures the builder’s perceptions of current single-family home sales and sales expectations over the next six months, as well as the traffic of prospective buyers of new homes.
As the following diagram shows, confidence dropped dramatically when stay-in-place orders were originally ordered earlier this year. Since then, it has hovered back.Looking at the three-month moving averages for HMI scores, confidence has grown in every region of the country:
- The Northeast increased 11 points to 76
- The Midwest jumped 9 points to 72
- The South rose 8 points to 79
- West increased 7 points to 85
Faith Is Validated By The Numbers
This confidence is certainly justified. According to a recent NAHB report, single-family homes increased 4.1% to 1.02 million annual rate, and single-family licenses grew 6% to 1.04 million unit rates, meaning newly built homes increased.
Apart report the la Mortgage Bankers Association (MBA) shows that mortgage applications for new home purchases grew by 33.3% compared to a year ago. Joel Kan, Associate Vice President of Economic and Industrial Forecasting at MBA, commented on the numbers:
“The housing market continued to exceed expectations in August as housing demand for new homes remained strong and the labor market continued to recover … The new domestic market maintained its path of recovery over the summer, with record-low mortgage rates and homes seeking more space will probably continue to push demand into the fall. “
If you are thinking of putting your house on the market but are afraid that you may not find a house to buy, let us connect to discuss new construction opportunities in our area.
Content previously posted in Keep Current Things