Because home builders have a unique perspective on the housing market, the National Association of Home Builders conducts a monthly survey to gauge how confident they are in the market for newly built homes. Their responses are scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In May, the NAHB’s Housing Market Index held steady at 83, unchanged from the month before. Chuck Fowke, NAHB’s chairman, says there are a few factors that have builders feeling optimistic about the market. “Builder confidence in the market remains strong due to a lack of resale inventory, low mortgage interest rates, and a growing demographic of prospective home buyers,” Fowke said. “However, first-time and first-generation home buyers are particularly at risk for losing a purchase due to cost hikes associated with increasingly scarce material availability.” It’s true. Construction costs – including the price of lumber – have spiked over the past year. That means, home buyers interested in buying a new home should expect rising prices, at least, through the end of 2021. (source)
