This week, we’re happy to report that we’ve had good news on the home front, literally. July was a great month for home builder’s confidence thanks to the job growth of June, which translated to a 53 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. Evidently, it’s the first time that number has passed 50 since January, and that number represents the halfway point for good versus poor sales conditions in single-family homes.
The real driver behind home builder confidence is demand, as we know all about here in Hawaii. Oahu in particular is dealing with a difficult housing shortage, which has been driving prices up. Maui isn’t in quite the same situation, but our market inventory is still very low. The combination of job growth and high demand for homes act as a major stimulus for new real estate developments.
Economists are pointing to a stronger sense of confidence among those who are considering a real estate purchase, now that job security has improved so substantially. More jobs and better income translate to a higher number of individuals who are willing to take out a mortgage to own their own property.
The aforementioned index involved a lot of increases. Expectations for future sales increased six points to 64, current sales increased four points to 57, and traffic of potential buyers went up three points to 39. Those are all three of the areas that the index covers, and all improved, which is great to hear.
According to the report, home building confidence was highest in the West and South, with the Midwest following after. The Northeast was behind. As for how Hawaii fits into the national performance, new home development has plenty of demand to fuel it, as long as the permitting process allows it.
We hope you’ve found this informative and helpful to you in your Maui real estate search. If you need assistance, you’ll find our contact information at the bottom of the page. Mahalo!
RealEstateMauiHawaii.com – By Mark Harbison