Builder Confidence High to Kick Off New Year
Builder confidence dipped in January, but continues in a healthy range, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. In January, the Index recorded a 75; at 51 or higher, builder confidence is overall positive.
“Low-interest rates and a healthy labor market combined with a need for additional inventory is setting the stage for further home-building gains in 2020,” said Greg Ugalde, Chairman of the NAHB, in a statement.
“With the Federal Reserve on pause and attractive mortgage rates, the steady rise in single-family construction that began last spring will continue into 2020,” added Robert Dietz, Chief Economist at the NAHB. “However, builders continue to grapple with a shortage of lots and labor while buyers are frustrated by a lack of inventory, particularly among starter homes.”