Mixed Housing News: Homebuilder Confidence Slips Creating “Deals” for Buyers

NAHB Homebuilder Confidence Survey

Homebuilder confidence is falling — a good sign for buyers of newly-built homes.

Homebuilder Monthly Survey

According to the National Association of Homebuilders, the Housing Market Index slipped one point to 16 in April. It’s the 5th time in 6 months that the index read 16 — a figure exactly in line with the 1-year average, but still considered “poor”. The Housing Market Index reports on a scale of 1-100.

Values of 50 or better representing “favorable conditions”. Values below 50 are considered “unfavorable”.

It’s been 5 years since the Housing Market Index read north of 50.

As an index, the HMI is actually a composite of three separate surveys, the results of which can be as telling as the final, compiled results. The surveys focus on specific aspects about a homebuilder’s business, and use the broader responses to gauge overall market “sentiment”.

The 3 questions are:

  1. How are market conditions for the sale of new homes today?
  2. How are market conditions for the sale of new homes in 6 months?
  3. How is prospective buyer foot traffic?

 

Read Between The Lines- Buyers Market in Dublin Ranch

Six months ago, the Housing Market Index projected a “flat” new home sales market for March 2011. We’ll see that data from the Census Bureau next week. However, if we look at nextmonth and the four months since, new home sales are huge.

This means that April, May, and June’s market will be especially strong.

As a Dublin Ranch home buyer this spring, therefore, use the HMI data to your advantage. When home builders feel less confident on housing, buyers can often exact better concessions and/or upgrades during the negotiation process.

And, so long as mortgage rates continue to rise, that pressure on builders should build. Good information and representation can help make the difference when purchasing new Construction in Dublin Ranch.

Get Pre-Approved So You Can Move Quickly

When you’re shopping for a newly-built home, have a pre-approval letter. It not only shows the builder that you’re serious, but just by getting pre-approved, you’re able to bid and close on your home faster than the next guy. And speed helps.

All things equal, builders want to close quickly. If you’re pre-approved, you can do that.

To get a free pre-approval (and to check mortgage rates while you’re at it) Give me a call at 925-708-5400 or shoot me a message below to get started!

 

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