If you are in the market to buy or sell a home, you may have heard that at the end of 2019, the national inventory declined by 9.5%, according to realtor.com.
What does this mean? With fewer homes on the market, and buyers actively searching for their next house, experts predict inventory will remain low into 2020.
It also means that builder confidence levels are breaking records.
National Association of Home Builders/Wells Fargo Housing Market Index
Every month for the past 30 years, the National Association of Home Builders (NAHB) conducts a Housing Market Index survey. This survey gauges builder perceptions of current single-family homes sales and sales expectations for the next six months.
The last two monthly surveys – December 2019 and January 2020 – have the highest confidence levels for builders since 1999. The confidence level reached 76 points in December and decreased by just one point in January. To compare, builder confidence in January 2019 was 58 points.
What does this mean?
With low inventory levels, low mortgage rates, and a strong labor market, builders are going into 2020 with high levels of optimism.
NAHB Chairman Greg Ugalde said,
“Low interest rates and a healthy labor market combined with a need for additional inventory is setting the stage for further home building gains in 2020.”
Builders are prepared to tackle the problem of low housing inventory, particularly for single-family homes and starter homes. Buyers who are frustrated with a lack of housing options can work with builders or search for new development projects in the area.
Are you considering building in 2020? Contact us today!