Get ready for more new homes!
The good news comes from a recently issued press release by the National Association of Home Builders. The association surveys several hundred home builders each month and asks them how they feel about a couple of things. Simple, emotional gut reactions.
One of the "how do you feel" questions is:
Do you expect sales of new homes, over the next six months, to be good, fair or poor?"
Sounds simple. It is. With that and a few other questions, the association issues a monthly report about how builders feel about the future. They assign it a number, and that number becomes the Housing Market Index (HMI).
The number went up 3 points in October, to 64. That's the highest it's been in 10 years.
Builders are optimistic- so what?
When new home builders read the tea leaves... they see more folks buying new homes over the next six months. So they start building now to make sure they've got homes on the market for these new buyers.
New home construction means more materials purchased. That means someone has to make and sell those materials. Jobs are created. Someone then has to build those homes. More jobs created.
New home sales are only a tenth of the housing market- but they pack a punch.
The economy just LOVES new homes!
Is it time to buy a new home?
It could all change in next month's report.
But for now...the economy just got a shot of adrenaline. And that's good news.
Homeowners insurance: Farcone Insurance: (888) 327-2663.