North Texas Homebuilder confidence is soaring.
New subdivisions have opened in Collin County, where there is still more land set for development. Homebuyers are swarming the model homes, and week-end traffic is brisk.
Sizable gains have been realized for the second time in three months, according to the Housing Market Index reports by the National Association of Homebuilders.
The Housing Market Index measures homebuilder confidence in the new construction market and is scored between 1-100. Readings above 50 indicate favorable conditions in the single-family new home market. Readings below 50 indicate poor conditions.
Home affordability remains historically high today, thanks to inventory, home values and amazingly low interest rates. It may not be so tomorrow.
Start your New Home Search now – call Norma Wall 214-212-6770 with any questions. At North Point Realty, we work as Buyers Agents and represent your interest with the home builder when it’s time to buy an new home.
The Housing Market Index leaped to 35 in July, a 6-point improvement and the index’s biggest one-month gain since September 2002.
The HMI is now up 14 points this year and is more than double its value of one year ago.
The Housing Market Index itself is a composite of three separate survey questions sent to NAHB members monthly. The questions are basic :
- How are market conditions for the sale of new homes today?
- How are market conditions for the sale of new homes in 6 months?
- How is prospective buyer foot traffic?
For July 2012, home builders reported huge gains. Current home sales are up 6 points; sales expectations for the next six months are up 11 points; and buyer foot traffic is up 6 points.
All three survey answers made 5-year highs. Not since 2007 has sales volume and foot traffic been as strong, and over the next 6 months, builders expect a blow-out finish to the year.
It’s no surprise, either.
Low mortgage rates throughout Texas have lowered monthly housing payments to levels below monthly rent for a comparable home. Plus, programs such as the FHA 3.5% downpayment program continue to help first-time buyers get in homes.
There is a downside to rising homebuilder confidence, however. When builders feel more comfortable about their business and the prospects for the future, they’re less likely to make sales concessions to to offer free upgrades. If you’re shopping for new construction, therefore, consider moving up your time frame.
Home affordability remains historically high today. It may not be so tomorrow.
Don’t go it alone — start your New Home Search here, and call Norma Wall 214-212-6770 with any questions. At North Point Realty, we work as Buyers Agents and represent your interest with the home builder when it’s time to buy an new home.