Homebuilders Anticipate Swift Rebound for Housing Market
June 19, 2020
The housing market seems to the one aspect of the economy that has escaped the coronavirus outbreak relatively unscathed. Sales in recent months have been much better than analysts’ dire expectations, and now homebuilder sentiment has seen the single biggest monthly jump on record.
Builder sentiment jumped 21 points in June, rising to 58, according to the Wells Fargo Housing Market Index. Any reading above 50 indicates a positive market.
All three of the index’s three components saw big increases. Current sales conditions jumped 21 points to 63. Builders’ sales expectations over the next six months jumped 22 points to 86, and buyer traffic almost doubled, increasing from 22 to 43.
One factor that some industry experts have noted is the suburban flight, as those in big cities, rattled by the coronavirus, have increasingly been looking to move into suburban areas.