As per Bloomberg News, the US homebuilder sentiment improved in September amidst signs of strong demand for housing and lower lumber prices.
Builder sentiment was seen to be ticking at a higher number at 76 as compared to a reading of 75 observed in August. Data furnished by the National Association of Home Builders/Well Fargo showed the same. However, a median forecast for the Bloomberg survey of economists demanded or called for a little less at 74.
Market showing signs of stabilizing
The builders are facing the wrath a little less because the cost of materials has eased out in the strong housing market amidst a situation when the prices of homes have steadily escalated. According to NAHB, a key challenge in the coming months for builders will be housing affordability, especially in the forthcoming quarters.
As per the report, the present condition of sales and traffic of buyers also showed an improvement. However, simultaneously, expectations in sales for the next 6 months have not changed and continue to be the same.
According to Bloomberg News, the West and the Northeast registered a decrease in September, recording the lowest sentimental levels as compared to last summer. The South and Midwest manifested a rise at the same time.
According to Robert Dietz, who is the Chief Economist at NAHB, the so-called single-family market has moved away from the hot unsustainable pace of construction mode to a more stable activity level of late. This is also one of the reasons why it is being said that the housing market is gradually looking up. In fact, the figures that predict the sales expectation for the next two quarters remain the same.