US Homebuilder Sentiment Beats, Marks 18 yr Highs
Confidence among US homebuilders rose in December to the highest mark since July 1999, exceeding all analyst estimates, as a growing economy boosts housing demand, according to data Monday from the National Association of Home Builders/Wells Fargo.
|Highlights of Homebuilder Sentiment (December)|
The surprisingly strong reading shows developers expect demand to advance amid steady economic growth and a tightening job market.
Mortgage rates remain close to record lows, making borrowing attractive for prospective buyers, while the homebuilders also cited easier regulation under President Donald Trump as helping the housing market.
Demand for properties is rising, with a gauge of homebuyer traffic rallying to a 19-year high, according to the survey. A host of data this week will give a fuller picture of the housing market, including sales of new and existing homes, as well as groundbreakings and building permits.
“Housing market conditions are improving partially because of new policies aimed at providing regulatory relief to the business community,” NAHB Chairman Granger MacDonald, a homebuilder and developer from Kerrville, Texas, said in a statement.
“With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year,” NAHB Chief Economist Robert Dietz said in the same statement.
- Regional index for the West jumped 8 points to 85; South increased 3 points to 75, highest since Y 2005
- Index for Northeast declined 8 points to 53
- Readings greater than 50 indicate more respondents reported good market conditions
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