The number of existing homes available for sale is lower than normal right now and that can be frustrating for home buyers. That’s why many of them have been turning to the new home market for additional options. The trend, according to the National Association of Home Builders, has been good for home builders and has driven builder confidence higher in recent months. In fact, the NAHB’s Housing Market Index – a monthly measure of how home builders feel about the market for newly built homes – increased for the fourth consecutive month in April, moving up one point from the month before. It’s now at 45 on a scale where any number above 50 indicates more builders view conditions as good than poor. Robert Dietz, NAHB’s chief economist, says new home inventory is currently high and buyers are interested. “Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10 percent,” Dietz said. “More buyers looking at new homes, along with the use of sales incentives, have supported new home sales since the start of 2023.” (source)
