A drop in mortgage rates has spurred homebuilding confidence heading into 2019, says a new report issued by the Washington-based National Association of Home Builders.
Using a monthly index with any responses above the number 50 categorized as positive, the homebuilders’ index today stands at 58.
In a statement, Randy Noel, NAHB Chairman, acknowledged the influence of the lowered mortgage rates on homebuilder confidence, but added: “Low unemployment, solid job growth, and favorable demographics should support housing demand in the coming months.”
The NAHB notes that home prices nationally are remaining steady, although an upward trend may not be entirely unexpected, as home sellers attempt to absorb the rising cost of both labor and materials.
In specific sub categories, the NAHB additionally notes that buyer traffic has increased, along with current sales conditions, and sales expectations for the coming six months.
Altogether, more than 876,000 residential units were built or under construction as of the end of 2018, up 3 percent over the final quarter of 2017.
The NAHB is also reporting in that their Remodeling Market Index continues to show signs of strength, with the major additions and alterations market at 56; minor additions also at 56; and home repair and maintenance work at the 59 mark.
As with the larger home building industry, remodelers say their greatest 2019 concerns are centered on the continued increase in building materials and labor costs.
By Garry Boulard
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