Since 2006: Builders Haven't Felt This Confident

Stephanie Sellers - Saturday, February 09, 2013

Builder confidence is at its highest point since 2006!  For 8 straight months the market has risen.  

Many factors contribute to this trend such as low interest rates, a shrinking inventory of distressed properties (Short Sales and Foreclosures).  Serious buyers are out in numbers that haven’t been seen since April 2006.

What could this mean for you?  The basic principal of economics is supply and demand.  As sales increase and inventory shrinks contractors (roofers, framers, plumbers etc) will require higher prices as well as manufacturers of building supplies.  The increase will then be passed on to buyers.  Low interest rates are expected to remain through 2013 however the increase in sales price could affect your payment.

Mortgage lenders still have tight lending practices.  It is important to speak with a qualified Real Estate Consultant to insure you are aware of current market trends and lenders who offer construction loans.

Source:  Los Angeles Times MONEY & Co,0,725691.story

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