The numbers: The National Association of Home Builders’ monthly confidence index rose 2 points to 44 in March, the trade group said on Wednesday.The jump in confidence in March was more than what analysts had expected. Economists polled by The Wall Street Journal expected the index to fall to 40.Builders were cautiously optimistic about the future. Since construction costs are rising, and elevated mortgage rates are hurting affordability, they’re not expecting sales to return to normal.
Due to their ability to offer rate buy-downs and other promotions that lower the cost of homeownership for buyers, as well as being one of the only players adding to housing inventory, builders are able to offer desperate buyers homes for sale. That’s keeping them confident. Big picture: Despite new home sales generally playing second fiddle to existing-home sales, the fact that builders are putting out new housing units for buyers – and offering deals – is boosting their market share.
What the NAHB said: “The cost and availability of housing inventory remains a critical constraint for prospective home buyers,” Robert Dietz, chief economist at the NAHB, said in a statement.“40% of builders in our March … survey currently cite lot availability as poor,” Dietz explained. And with the U.S. Federal Reserve tightening even further, builders expect “further constraints for acquisition, development and construction … loans for builders across the nation,” he added.
Is this even real? What rock are these people living under?
how is that even possible?
US builder confidence
Fake