Chicago Home Options

Ginger Bonneau

  • Home
  • About
  • Resources
    • First Time Home Seller Tips
    • First Time Home Buyer Tips
  • Reviews
  • Contact Ginger

Why Builder Confidence Surveys Matter To Buyers Of New Homes

December 17, 2010 by Ginger Bonneau Leave a Comment

National Association of Home Builders Housing Market Index (Nov 2009-Dec 2010)Home builder confidence is holding firm this month, according to the National Association of Home Builders.

The group’s monthly Housing Market Index survey posted 16 for December. That’s the same value as from November. It’s also equal to this 2010’s average HMI reading.

HMI is scored on a scale of 1-100, and is a composite of 3 separate home builder surveys measuring single-family sales; projected single-family sales over the next six months; and prospective buyer foot traffic.

The results of the 3 surveys were as follows:

  • Single-Family Sales : 16 (unchanged from November)
  • Projected Single-Family Sales : 25 (unchanged from November)
  • Prospective Buyer Foot Traffic : 11 (from 12 in November)

Values of 50 or better indicate favorable conditions for home builders. Values below 50 indicate unfavorable conditions.

In other words, although improving, conditions for home builders remain less from excellent. Home buyers in Chicago can use this to their advantage. When builders feel pressure from the market, they’re more likely to offer discounts.

On the other hand, job growth is returning, the economy is expanding, and mortgage rates are rising. These 3 factors are thought to boost housing markets. So, despite an unfavorable HMI reading, home builders might still be less willing to “make a deal”; holding out for a better 2011.

November’s strong Housing Starts data supports that line of thinking.

If you’re buying a newly-built home in the Gold Coast area , or expect to buy sometime in 2011, keep an eye on home builder sentiment surveys. The better the builders feel, the more you may be asked to pay to buy your next home.

Filed Under: Homebuilders Tagged With: NAHB,Housing Market Index,HMI

Leave a Reply Cancel reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ginger

Contact Ginger


Consultant
Office: 312.254.0200
Mobile: 312.608.1125

Connect with Me

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

Recent Articles

  • An Overview Of Private Mortgage Insurance
  • The Top Tips For Impressing A Potential Buyer At Showings
  • Case-Shiller Reports Home Prices Rise at Fastest Pace in 7 Years
  • What Homeowners Must Do When Behind On Mortgage Payments

Looking For Something?

Categories

Our Location

1586 N. Clybourn
Chicago, IL 60642

Copyright © 2021 · Powered by MySMARTblog