Builder confidence for new home construction is at an 18-year high at 74 points total for December, according to the Housing Market Index (HMI) of the National Association of Home Builders/Wells Fargo (NAHB). The HMI measures the traffic of home buyers in the coming months which is up eight points alone to 58. It also measures current sales conditions and sales expectations for the next six months which jumped four points to 81 and three points to 79 respectively.
The NAHB HMI rates home sales expectations on a scale of “good, fair, or poor” and it rates homebuyer traffic as very high, high, average, low, and very low. All of these saw gains for December and the months ahead in 2018.
With unemployment and interest rates low and a dwindling housing supply, we can expect to see more new construction of single family residences in the coming year. Additionally, new policies aimed at providing relief to businesses should continue this optimism well into 2018.