If anybody knows the new home market, it’s builders.
After all, they are the ones supplying the homes and, if there’s no demand, they likely wouldn’t bother doing the work. So, when it comes to assessing the health of the market for newly built single-family homes, asking a builder is a pretty good place to start. For that reason, the National Association of Home Builders has been doing exactly that each month for the past 30 years. And, according to their most recent Housing Market Index – which measures builder confidence – builders are feeling excited about the year ahead.
Randy Noel, NAHB’s chairman, says builders are particularly optimistic about the economy and the growing demand for new homes. “Builders are confident that changes to the tax code will promote the small business sector and boost broader economic growth,” Noel said. “Our members are excited about the year ahead, even as they continue to face building material price increases and shortages of labor and lots.” So what does this mean for home buyers? Well, it means more new homes will be built, which increases choices and also dampens price spikes. In other words, optimistic builders are a good sign for home buyers in 2018.