More good news from the housing market! The National Association of Home Builders (NAHB) has announced that homebuilder confidence remained positive in November, reassuring current and future homeowners across the country.
Specifically, national builder confidence in the newly built and single-family homes sector maintained a level of 54 this month, as measured by the Housing Market Index (HMI). While month-to-month fluctuations are expected, any level above 50 still means that more builders have an optimistic outlook compared to those who don’t. For the first time since 2006, this November marks the sixth consecutive month that builder confidence has been above 50.
NAHB Chairman Rick Judson points to the current average interest rate, along with the favorable pricing environment, for consumers’ continued interest in purchasing a new home. Interest rates have been back and forth in recent weeks, but are expected to settle at lower numbers by the end of the year. For homebuyers, this could potentially mean paying less over 30 years, which has encouraged more to jump into the market.
After all, 2013 has proven to be a great year to buy a home. Prices and interest rates have paired together to create the best possible buying conditions. According to the NAHB/Wells Fargo Housing Opportunity Index, in the third quarter, 64.5 percent of homes were affordable to families earning the median income in the U.S!
During this season of the year, it’s typical to see a dip in the housing market while people put their house hunting efforts on the back burner. To find that homebuilder confidence is staying strong through the colder months is very encouraging, as homebuilder confidence is an important factor in economic recovery. Like we’ve mentioned before, all segments of the housing sector – single-family, multi-family, and remodeling – have an unprecedented impact on gross domestic product (GDP). And in the third quarter, housing contributed to an incredible 15.6 percent of GDP!
At Bayside, we’ve welcomed a new homebuilder, Schell Brothers, to join NVHomes. Schell Brothers will bring their villas and single-family homes to add to the townhomes and single-family homes built by NVHomes. Additionally, Echelon Custom Homes and Marnie Custom Beach Homes will be available to build custom houses, helping to create a truly unique neighborhood. With builder confidence as positive as it is, we’re certainly looking forward to next year!
For those in the market to move into a beach community, Bayside couldn’t be a better choice! Nestled in Fenwick Island, our community is an excellent place to take advantage of the favorable housing market and buy a beautiful new home.