Builder confidence surged 6 points to a level of 78 in August. It’s the highest level recorded on the National Association of Home Builders/Wells Fargo Housing Market Index, matching December 1998’s record-setting level.
"The demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs as measured on the HMI," NAHB Chairman Chuck Fowke said in a statement.
It’s been a roller coaster year for the HMI, which also had a historic 42-point plummet at the start of the pandemic in April. It has risen steadily since.
"Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020," NAHB Chief Economist Robert Dietz stated. "Single-family construction is benefiting from low interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable, lower density markets."
The HMI began tracking builder confidence levels 35 years ago. Levels above 50 indicate more builders view conditions as good than poor.
