Homebuilders: Optimistic Like It’s 1999

Courtesy of National Association of Homebuilders

Survey says…

December of 2019 registered the highest score for builder confidence since June of 1999, according to a monthly survey conducted by Wells Fargo and the National Association of Homebuilders (NAHB). 

The Housing Market Index is based on builder survey data about current home sales, anticipated sales for the next six months, and the numbers of prospective buyers approaching the builders.  An average of the three scores above 50 is considered positive, and December came in at 76.  (Respective numbers in December were 84 for current sales, 79 for expected sales and 58 for prospective buyers.)

Growth Exceeds Expectations

The increase exceeded an already optimistic outlook by economists who had predicted a score of up to 70 in a Bloomberg survey.   The numbers prompted Pantheon Macroeconomics Chief Economist Ian Shepherdson to call housing “the hottest part of the whole economy,” while predicting continued growth over the coming months.

Regionally, the index fell two points in the Northeast (down to 61—still a positive rating) but saw increases in the South (up to 76), West (up to 84), and Midwest (up to 63). (Related: Real Estate Markets to Watch in 2020 and Beyond)

Positive economic trends like good employment rates and increasing wages help drive optimism. NAHB Chief Economist Robert Dietz noted that short supplies of labor and land, though, are offsetting growth, keeping prices high and supplies low.

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest
Share on email
Share on reddit
Share on print
Share on google

Leave a comment

What’s Happening in the News: Late November, 2020

This week, we look at how consumers feel about buying a home, vs. how many homes are actually being sold, vs. the affordability of available homes. There’s also a surprising concession from the Fed on climate change, and an encouraging forecast on how we can get to net-zero, fast.

Read More »

Having an Attainable Home, at the end of the day, is an idea. An idea that everyone has the right and the chance to work hard, live comfortably, and have prosperity throughout their life, and we’re happy to say that it’s still possible.

Subscribe to our news & updates

Attainable Home's content is for educational and informational purposes only and should not be taken as professional legal or financial advice. If you feel you need advice, you must consult a professional licensed in the appropriate field. While we do our best to keep these updated, things can change sometimes. Our primary purpose is to help others by providing great content and resources, and we may also have relationships and sources listed on the website that may result in compensation to our company in some form, as our company needs to be financially sustainable by paying all authors well and supporting the online systems. All views and writing are also solely the opinions of the authors and may or may not fully represent the view of the company's.