An economy which is stronger and the housing shortages being severe have made sure that the homebuilders of the nation are feeling much better than they did in the past two decades. The confidence of the builders in the single-family and newly built home market has seen a jump of 5 points in the month of December to 76 points which is the highest it has been since the month of June in the year 1999 as per the data which has come out of the National Association of Homebuilders and anything which is above the mark of 50 is considered as being positive.
The reading of November had also been revised to a point higher. The index was standing at 56 in the month of December last year. In the year 2009, during the housing crash, it had hit a low of 8 points.
The chairman of the association has said that the builders are continuously seeing that the housing is rebounding ever since the spring which has been supported by the supply of the existing houses which was low and the labor market being strong.
The confidence of the builders is based clearly on what they see in the showrooms,
Although it cannot be said that everything is perfect in the market of homebuilding. The builders in all probability may be doing better if they were not seeing all the headwinds.
NAHB has said that while there is a short term positive condition with the unemployment being at an unprecedented low, they were still underbuilding as there are constraints such as availability of land and labor which are the supply-side constraints in the market.