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
Investing involves risk, and the return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. The S&P 500 Composite Index is an unmanaged group of securities considered to be representative of the stock market in general. The Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and considered a broad indicator of the performance of stocks of technology and growth companies.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.