According to a recent MReport, homebuilder confidence is on the rise! The latest National Association of Home Builders/Wells Fargo Housing Market Index stated that builder confidence for new single family homes has risen seven points to 37. There has been a boost to the home construction industry due to it being deemed an “essential” business. This allowed workers in this industry to resume working and earning during the COVID-19 pandemic. The increase in confidence is encouraging for builders and their employees. Another contributing factor to the optimism is the builders ability to adapt to their new business environment. They are using innovative methods to thrive during this time of change. These methods include using resources such as social media, virtual tours, and closing deals online. Additionally, adoption of third party and virtual inspection mandates have been adopted.
WHAT ELSE DID THEY FIND?
For the most part, the demand in the market has maintained its level due to low interest rates. Furthermore, employees are getting back to work as businesses are starting to open back up. Because of the relaxation of the stay-at-home mandates, experts believe the demand for new homes will continue to increase. Mortgage application data has shown a rise throughout April, which indicates that buyers are active and looking for their next home. The NAHB reported that the overall costs for residential construction materials fell 4.1% in April, which is more than ever recorded. Overall, all of these factors have given builders an optimistic outlook for the future.
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