Home builder confidence in the newly-built, single-family housing market remains high.
March, for the second consecutive month, the National Association
ofÂ HomebuildersÂ reports the Housing Market Index at 28 -- a doubling of
the reading from just 6 months ago and, along with last month, the highest HMI value since June 2007.
home builder confidence reads 50 or better, it reflects favorable
builder conditions in the single-family, new home market. Readings below
50 suggest unfavorable builder conditions.
The HMI itself is a
composite reading. It's the result of three separate surveys sent to
home builders by the trade association. The NAHB asks builders to report
on their current single-family home sales volume; their projected
single-family home sales volume for the next 6 months; and, their
current buyer "foot traffic".
Approximately 400Â surveys are returned each month. The results are compiled into the NAHB Housing Market Index.
In March, home builders provided mixed replies to the survey questions :
- Current Single-Family Sales : 29 (-1 from February)
- Projected Single-Family Sales : 36 (+2 from February)
- Buyer Foot Traffic : 22 (Unchanged from February)
noteworthy, despite slowing sales in March, that home builders expect a
surge in new home sales over the next 6 months. The reasons for this
are several and should be of interest to today's home buyers.
the jobs market is heating up. The U.S. economy has added more than 1
net new million jobs over the last 6 months and that is increasing the
pool of potential home buyers in Ulster County and nationwide.Â
the housing market, in general, is improving. Home sales are brisk in
many U.S. markets and home supplies are dropping. This creates pressure
on home prices to rise.
And, third, low mortgage rates have helped
pushed home affordability to all-time highs. More home buyers earning
the national median income can afford a median-priced home than at any
time in history.Â
It's all culminated in a monthly Buyer Foot Traffic reading which, at 22, is nearly triple the foot traffic reading
from just three years ago.Â Home buyers -- in Woodstock and everywhere
else -- are out in full-force, capitalizing on today's buyer-friendly
If you're looking to buy new construction in the second
half of 2012, consider moving up your time frame. Market conditions are
constantly changing, and may move out of your favor. As builder optimism
increases, the price you pay for your new home may increase, too.Â
For more information on Ulster County Real Estate
, visit our website: www.murphyrealtygrp.com