Midwest Sees Growth In New Single-Family Homes In March

Share Article

The Federal Savings Bank shares news and comments on the status of builder confidence and new single-family home growth.

News Image
the regional HMI score for the Midwest grew two points, while the other three major regions fell in points

While builder confidence decreased in March, The Federal Savings Bank is pleased to know that builders are overall optimistic about the growth of new single-family home sales in the future because of positive economic factors, according to the housing market index posted by the National Association of Home Builders and Wells Fargo on March 16th. The HMI dropped two points from the previous month to 53, with a score above 50 suggesting builders have a positive outlook for the sales of new single-family homes.

"The drop in builder confidence is largely attributable to supply chain issues, such as lot and labor shortages as well as tight underwriting standards," David Crowe, chief economist for NAHB, said in a statement. "These obstacles notwithstanding, we are expecting solid gains in the housing market this year, buoyed by sustained job growth, low mortgage interest rates and pent-up demand."

While two of the three factors of the HMI worsened in March, the indicator for sales expectations in the next six months remained solid. The Federal Savings Bank also saw another bright spot in the survey, as the regional HMI score for the Midwest grew two points, while the other three major regions fell in points.

New home growth could alleviate tight supply
The National Association of Realtors said existing-home sales decreased in January as there was tight supply on the market, as Reuters reported on February 23rd. With greater construction increases anticipated for the new single-family homes market, price growth could slow down. This combined with expansion in the economy in both in job gains as well as wage gains could help more buyers afford to bid on homes and make mortgage payments.

An economist described the labor market as buoyant and that the housing recovery could pick up in the coming months, Reuters reported.

Contact the Federal Savings Bank, a veteran owned bank, to learn more about mortgages.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Giorgio Urbano Ferrero
Follow us on
Visit website