According to the National Association of Home Builders, the new-home market was up in September marking 5 straight months of positive growth. Of course, there’s always a caveat with any good news for the home market.
According to Builderonline.com, confidence among builders has definitely improved but many remain cautious. The Chief Economist from the NAHB, David Crowe, sounds a little more even-keeled with the news. In a news release, he says, “”Against the improving demand for new homes, concerns are now rising about the lack of building lots in certain markets and the rising cost of building materials. Given the fragile nature of the housing and economic recovery, these are significant red flags.”
Despite the red flags, confidence from home builders is still there. “Builders across the country are expressing a more positive outlook on current sales conditions, future sales prospects and the amount of consumer traffic they are seeing through model homes than they have in more than five years,” Crowe said.
What about home remodeling? The National Association of the Remodeling Industry believes the climate this year is certainly better than last.
From the NARI website: “There are clear indications that some of our NARI members believe that they have weathered the storm, and expect consumer confidence to return in a more consistent pace going forward,” says Kevin Anundson, CR, CKBR, NARI National Secretary and president of Owner Assisted Remodeling based in Elm Grove, Wis.
NARI also says they are hearing from remodelers who say say consumer confidence has a different tone this time around. “People are aware that that their home values may not be as high as they once were, yet that only affects those that are forced to sell,” Anundson says. “Many homeowners have made the decision to remain in their home and are choosing to make improvements and increase their comfort and long-term living accommodations. This thought process allows them to be much less concerned about returns on investment and resale values.”