Home builders are a good gauge of what is going on in the housing market. After all, their business depends on knowing whether or not Americans are interested in buying a house. And so, the National Association of Home Builders tracks builder confidence as a way of measuring how much demand there is for new homes today and over the next six months. In April, builder confidence dropped a point from the month before but remains high, due to expectations for the spring and summer season. “Ongoing employment gains, rising wages, and favorable demographics should spur demand for single-family homes in the months ahead,” NAHB chief economist, Robert Dietz, says. “The minor dip in builder confidence this month is likely due to winter weather effects, which may be slowing housing activity in some pockets of the country. As we head into the spring home buying season, we can expect the market to continue to make gains at a gradual pace.” In short, economic conditions are fueling Americans’ desire to buy a home and, as the buying season begins, builders expect increasing interest. More here.
