Builder confidence in the market for newly-built single-family homes increased five points to hit an all-time high of 83 in September. According NAHB/Wells Fargo Housing Market Index (HMI). The previous highest reading was 78.
Historic traffic numbers have builders seeing positive market conditions, L
Lumber prices are now up more than 170 percent since mid-April, adding more than $16,000 to the price of a typical new single-family home.
However, the suburban shift for home building is keeping builders busy, Supported by low interest rates. In another sign of this growing trend,
NAHB the NAHB/Wells Fargo Housing Market Index gauges builder perception of sales expectations as very good.
All the HMI indices posted their highest readings ever in September. The HMI index gauging current sales conditions rose four points to 88, the component measuring sales expectations in the next six months increased six points to 84 and the measure charting traffic of prospective buyers posted a nine-point gain to 73.
Looking at the three-month moving averages for regional HMI scores, the Northeast increased 11 points to 76, the Midwest increased nine points to 72, the South rose eight points to 79 and the West increased seven points to 85.
Nice post. Some of the small spec home builders that we finance are venting about the inflated cost of lumber since the pandemic hit. But, they are working through it the best they can.