Here’s what you need to know about the housing market.
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. With this in mind, the top requirements for buyers are hardly surprising: a home office, a garage, and greener backyards. In addition, record-low mortgage rates have made urban flight a reality for many.1,2
Remember, housing’s contribution to the Gross Domestic Product (GDP) can average as high as 18 percent, making it a critical barometer to monitor.3
We understand that a home is often the biggest financial commitment many can make. That’s why when it comes to your most important financial decisions—like buying your first home— we’d love to help.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
1. CNBC.com, August 25, 2020
2. MarketWatch.com, August 25, 2020
3. NAHB.com, 2020