Builders Building Confidence From Home Buyer Activity
It seems the only thing that builders in the South are not sure about are their buyers, but their optimism and confidence in their clients has been increasing for 5 consecutive months in a row now. According to the National Association of Home Builders’ HMI score which is taken each month in partnership with Wells Fargo, builder 
confidence rose 4 points in November. The HMI or Housing Market Index is a broad survey taken nationwide from participating builders gauging the real estate market on 3 different topics – current home sales conditions, future new home sales projections, and consumer participation or confidence. Three scores from the survey are taken and the average of the 3 is a measure of builder confidence. Any score over 50 means that housing market conditions are favorable. In the South, builders scored 62 while the nationwide average rose to 58. The national score for current sales conditions rose 5 points – in one month – to 62 and future sales expectations also rose two points to 66. The only “low” number was the level of consumer confidence – gauging traffic of prospective home buyers which was still below 50 at 45, but this score also rose 5 points from the previous month. Builder confidence is increasing and so is investor confidence.
Real estate investment has been tossed around as a “safe bet” for years before the bottom dropped out of the real estate industry in 2008. However, even during those tumultuous times, prospectors were scooping up foreclosure and turning them for rentals or a profit even during the worst of the Recession. The brighter side to real estate investment has once again emerged as even Wall Street portfolio are starting to be peppered with construction 
acquisitions. One of the reasons that real estate is so attractive right now is because of the still historically low interest rates. So, the cost to obtain the investment is not nearly as high, and after home prices have been increasing year-over-year since the Recession, the housing pricing market also seems to have stabilized and can go back to its naturally occurring appreciation that happens over time.
“Low interest rates, affordable home prices and solid job creation are contributing to a steady housing recovery,” said NAHB Chief Economist David Crowe. “After a slow start to the year, the HMI has remained above the 50-point benchmark for five consecutive months, and we expect the momentum to continue into 2015.”
Here at home in St. Tammany Parish, Bedico Creek Preserve has experienced first-hand a rise in builder confidence. We now have 17 active builders in our community. Three of our builders BMI Construction, Inc., Hurley Homes, and YAR Construction Company have gotten together to build inventory homes for sale in our New Neighborhood Cypress Crossing. Just a few years ago, it would have been unthinkable to “just build a home” and hope that a buyer would show up to be able to obtain a mortgage for it. Now, we have a vibrant subdivision filled with new homes for sale and lots for sale that are selling at an amazingly rapid rate. To “get in on the action,” Contact Us Directly at 985-845-4200 or E-mail Us at Info@LiveBedico.com to find out what all the excitement is about. We are on site to give a tour of our growing master planned community in St. Tammany Parish.
