Lumber Prices And Demand Keep Builders Confident
The new home market is an important indicator for anyone interested in making a move in the near future. Mostly, this is because the number of new homes being built and put on the market has an effect on home prices across the board. And so, keeping an eye on how confident builders feel can be a good way of gauging upcoming affordability conditions. For this reason, the National Association of Home Builders conducts a monthly survey of builders and scores their perceptions on a scale where any number above 50 indicates more of them view conditions as good than poor. In September, their Housing Market Index was unchanged from the month before but still high at 67. Randy Noel, NAHB's chairman, says builders are feeling optimistic due to a high level of demand and lower lumber prices. “Despite rising affordability concerns, builders continue to report firm demand for housing, especially as millennials and other newcomers enter the market,” Noel said. “The recent decline in lumber prices from record-high levels earlier this summer is also a welcome relief, although builders still need to manage construction costs to keep homes competitively priced.” More here.