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Homebuilder Sentiment Surges as New Construction Jumps
July 17, 2020
The U.S. housing market has proven to be especially resilient during the coronavirus outbreak, and homebuilders are feeling as confident now as they were before the pandemic.
Homebuilder sentiment jumped 14 points in July, climbing to 72, the exact level it was in March, before the pandemic hit the economy in full force. Anything above 50 is considered positive. The index bottomed out in April, plummeting to 30.
All three of the index’s components–current sales expectations, sales expectations for the next six months, and buyer traffic–increased.
The strong sentiment comes as the construction of new homes jumped 17.3% in June. While construction is still about 4% lower than the same period last year, permit applications suggest that strong construction is likely to continue.
