US homebuilders optimistic about demand, sales in 2014

New York /
Dec.December 17, 2013 04:15 PM

Builder confidence is on the upswing ahead of the new year. The National Association of Home Builders/Well Fargo Housing Market Index rose four points in December to 58 — up 11 points since the same time last year and sustaining a score of more than 50 for the seventh straight month. The index looks at sales of newly built, single-family homes across the U.S.

The index for current sales conditions, one of the three factors that goes into determining the overall score, jumped six points to 64, and future sales expectations lifted by two points to 62. Prospective buyer traffic, meanwhile, was up three points to 44.

The numbers indicate that the growing demand is stable, analysts with investment bank Keefe, Bruyette & Woods told HousingWire. And the boom is only expected to continue, with a projected purchase volume growth of 5 percent in 2014.

“We believe home prices could rise by approximately 6.5 percent for the full year and by 2-4 percent from current levels driven by price increases that to date have yet to show up in closings, modest inventory levels in favorable markets and investor demand for distressed real estate,” an analyst with KBW told HousingWire.

That confidence is on the rise despite concerns about climbing interest rates and uncertainty kindled by the recent government shutdown, David Crowe, chief economist with the NAHB, told HousingWire. Since the end of the shutdown, the release of pent-up demand has buoyed the uptick, he said. [HousingWire]Julie Strickland


Related Articles

arrow_forward_ios
Single-family rentals are increasingly seen as a more realistic alternative to ownership, given the hot housing market and income inequality. (iStock)
Single-family rentals soaring in hot housing market
Single-family rentals soaring in hot housing market
Vacation home sales took a dip this summer
Vacation home sales took a dip this summer
Vacation home sales took a dip this summer
Ribbon co-founders Shaival Shah and Wei Gan (Ribbon, iStock)
Homebuying startup Ribbon to take on Midwest, West Coast markets
Homebuying startup Ribbon to take on Midwest, West Coast markets
HomeLight Founder and CEO Drew Uher & COO Sumant Sridharan (HomeLight, Uher)
HomeLight lands $100M in Series D equity, valuing company at $1.6B
HomeLight lands $100M in Series D equity, valuing company at $1.6B
Reali CEO Tyler Baldwin (Reali)
Home buying and selling platform Reali raises $250M in Series B round
Home buying and selling platform Reali raises $250M in Series B round
Black homeownership’s Catch-22
Black homeownership’s Catch-22
Black homeownership’s Catch-22
Invitation Homes CEO Dallas Tanner and PulteGroup Ryan Marshall (Invitation Homes, LinkedIn)
Invitation Homes eyes expansion with PulteGroup partnership
Invitation Homes eyes expansion with PulteGroup partnership
Los Angeles, New York and Miami metro areas are in the top 10 of owner-occupied million dollar homes. (iStock)
These metro areas have the most — and fewest — million-dollar homes
These metro areas have the most — and fewest — million-dollar homes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...