The single-family home market is increasingly being seen as a bright spot for the nation’s builders, says a new survey issued by the National Association of Home Builders.
Measuring building confidence through its Wells Fargo Housing Market Index, the survey pegged contractors’ responses at a high 85. That number has increased from the 83 recorded in September.
Any number above 50 indicates that respondents feel more positive than negative about general conditions.
The index saw its low point during the first weeks of the pandemic shutdown with a score of 30. Continued home-building throughout the summer spurred an increase to 78 by August.
According to the NAHB, the September and October index results are the first time in the 35-year history of the survey that the numbers have been over 80 for two months in a row.
In a press release looking at the survey’s results, Robert Dietz, NAHB chief economist, noted that “new single-family home sales are outpacing starts by a historic margin.”
“Bridging that gap will require either a gain in the construction volume or reductions in available industry,” continued Dietz, “which is already at a historic low in terms of month’s supply.”
The index survey also showed builders in the West expressing the most confidence in the future of homebuilding at 90, followed by the Northeast and South at 82, and the Mideast at 75.
Since the sharp index decline recorded this spring, the West has consistently led the rest of the nation with the highest homebuilder confidence levels.
By Garry Boulard
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