A stronger economy south of the border and a severe housing shortage have homebuilders feeling better than they have in two decades.
Figures released Monday morning in the form of the National Association of Home Builders/Wells Fargo Housing Market Index showed that builder confidence in the newly built, single-family home market jumped five points in December to 76, the highest reading since June 1999, head and shoulders above the “just-getting-by” point.
Anything above 50 is considered positive.
November’s reading was also revised higher by one point. The index stood at 56 last December. At the worst of the housing crash, in 2009, builder sentiment hit a low of just 8.
Builders’ confidence is clearly based on what they’re seeing in their showrooms. Of the index’s three components, current sales conditions rose seven points to 84, sales expectations in the next six months rose one point to 79 and buyer traffic increased four points to 58.