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Home Builders Confident In Economic Rebound

Home Builders Confident In Economic Rebound

September 02, 2020
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To some, this may hardly feel like an economy headed for a bright future. But don’t tell that to home builders.

Builder confidence in August jumped to an eye-popping 78 in August, according to the Housing Market Index courtesy of the National Association of Home Builders. To put that number in perspective, anything over 50 is considered positive.1

This past April, builder confidence plunged to 30 as the pandemic swept the nation. In August, the index hit the highest level in the 35-year history of the monthly series and matches the record set in December 1998.1

Due to the ongoing pandemic, many people transitioned to working from home at the beginning of the year. As 2020 wore on, and schools made plans to offer remote learning, many homes began to do triple duty as a space to live, work, and learn. This has really shifted the type of  the floor plan that homeowners desire.

They want designated office space to have privacy to do their work and hold Zoom meetings with their team. An open floor plan from the office to the living room is needed so that they can watch their kids from their office. Space for a classroom-like environment is important as well, because no one is sure when their kids will be back in their classrooms. In addition, record-low mortgage rates have made urban flight a reality for many.1,2

Housing’s contribution to the Gross Domestic Product (GDP) can average as high as 18 percent, making it a critical barometer to monitor.3

A home purchase is one of the biggest financial decisions you will make. You do not have to do it alone. If you need help strategizing on how to save for your home or want to know important things regarding your finances when preparing to purchase, feel free to reach out to me.    

1. CNBC.com, August 25, 2020

2. MarketWatch.com, August 25, 2020

3. NAHB.com, 2020

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