Builder Confidence Improvement Being Called Milestone by NAHB

One indication that the housing market is recovering, that home buyers can “take to the bank,” is when builder confidence begins to cautiously but optimistically improve.  If there is anyone out there who has the most to lose in today’s market, it is the new home builder.  For many years, there were a lot of folks who decided, on a whim, to become a home builder.  Here in Louisiana, there are strict requirements for becoming a licensed residential or commercial builder.  Many people took classes, studied the material, apprenticed under qualified builders and took the test.  Once they received their licenses, they just “stepped out into the market” and began the process of establishing themselves as a builder.

With the collapse of that market, many of these builders yearned to stay in the business because, after all, they had gotten into home building because they had a passion for it.  However, with both home sales and new home sales “grinding to a halt,” many new builders were not able to maintain.  There are many enormously qualified builders in St. Tammany Parish that build right here at Bedico Creek in St. Tammany Parish.  Many of these builders have been building for over 20 years.  These builders downsized, scaled back, sold out, and hunkered down to wait out the storm.

According to the National Association of Home Builders (NAHB), their patience has been rewarded.  The NAHB is reporting a steep increase in builder confidence in June, rising 8 points to top out at 52.  Any number higher than 50 means that builders think the market is doing well; any number below that indicates a poor market (according to builders). As with other statistics which have been reported lately, this is the highest level of builder confidence since April, 2006 – that’s SEVEN years!  This is such a significant number that the NAHB is calling it a Major Milestone.

Home buyers should definitely keep an eye on these numbers to see if they will continue to rise – or at least hold steady – throughout 2013.  There are predictions that home sales will continue to rise over both 2014 and 2015 as well.  However, keep in mind that if you are interested in buying a lot or a home, now would be a good time to take advantage of the still historically low interest rates, as well as the selection of homes and lots on the market.  Here at Bedico Creek, we have 6 Neighborhoods from which to choose, as well as many different stable and quality home builders.  Come to Bedico Creek Preserve, if you haven’t already, take a tour, and learn more out about our new home and lot selections. Call 985-845-4200 or E-mail [email protected].

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