US homebuilders remain confident despite challenges

by Steve Randall on 19 Nov 2019

Homebuilders south of the border are remaining generally positive about the market for newly-built homes.

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) shows a 1 percentage point decline to 70, although it is the second-highest reading of 2019.

“Single-family builders are currently reporting ongoing positive conditions, spurred in part by low mortgage rates and continued job growth,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. “In a further sign of solid demand, this is the fourth consecutive month where at least half of all builders surveyed have reported positive buyer traffic conditions.”

However, builders are still grappling with low supply of lots, labour shortages, and regulatory burdens.

Overall, though current conditions, buyer traffic, and the outlook for the next 6 months are all in positive territory.

“We have seen substantial year-over-year improvement following the housing affordability crunch of late 2018, when the HMI stood at 60,” said NAHB Chief Economist Robert Dietz.

The three-month moving averages for regional HMI scores shows that the Northeast posted a two-point gain to 62, the West was up three points to 81 and the South moved one point higher to 74. The Midwest remained unchanged at 58.

Post a Comment

Most Trending News

The advantages of investing in real estate
News

Even amid the pandemic, there are plenty of advantages to investing in real estate. Here's what Cliff Fraser, chief business development officer of Burlington, Ontario-based Equiton Inc., has to say on the matter.

Read More
Bank Of Canada Holds Overnight Rate Steady
News

"Recent jobs data show that workers in contact-sensitive sectors have once again been most affected. The employment rate remains well below its pre-pandemic level, with low-wage workers, youth and women continuing to bear the brunt of job."

Read More
In Toronto, condos are your best bet
News

According to Point2 Homes’ 2021 Homebuyer Survey, 51% of Canadian respondents said they have no worries buying while 44% said they're unsure when they'd buy due to low inventory and high prices.

Read More