As housing continues to show its resilience amid the pandemic, the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) revealed that builder confidence for new single-family homes jumped six points to 78 in August. According to NAHB, this is the highest confidence has been in the 35-year history of the HMI series, matching a record that dates back all the way to December 1988.
“The demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs as measured on the HMI. Single-family construction is benefiting from low interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable, lower density markets, as seen in the separate NAHB HBGI,” read the analysis by NAHB Chief Economist Robert Dietz.
The monthly survey has been conducted by NAHB for the past three decades and measures builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” fair” or “poor. Additionally, the survey also asks builders to score traffic of possible homebuyers from “high to very high,” “average” or “low to very low.”