Summary: Washington and Seattle home builder confidence levels are continuing to rise according to the Housing Market Index. In this article, we’ll discuss why that is and what this means for buyers.
The inventory situation in Seattle has been dismal for a long time, leaving buyers with very little to choose from. And with the coronavirus pandemic plaguing the nation, sellers have been scant, which has further exasperated the inventory situation.
Home Builder Confidence High in August
Not only do we need more sellers on the market, but we also need new homes to be built to accommodate for the pent-up demand, and it looks like we’re getting that. While home builder confidence was not very strong in recent weeks because of the health crisis, the latest readings are painting a very different picture.
In fact, home builder confidence spiked to a record high in August 2020. According to the National Association of Home Builders, the confidence index that is released every month increased to 78 in August, which is 6 points higher than the month before.
That marked the highest on record since the data started being collected. Any reading over 50 point to an improvement in confidence. It was under 50 in April and May.
The real estate market has been a positive sector for the economy as many others have faltered amid the coronavirus pandemic. And with mortgage interest rates being as low as they continue to be, buyers are even more encouraged to get in the market, fueling ongoing buyer demand.
Today’s new construction market is a “builder’s market,” and Seattle home builders are becoming more confident because of it. This market is this way because fewer houses are available for sale, while more people are interested in purchasing.
If you are going to buy a newly constructed home in Washington within the next few months, it may be in your favor to move up your time frame and purchase sooner rather than later. The experts at Sammamish Mortgage can help you with your new home purchase. Get the latest Seattle mortgage rates and start planning your move today!
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Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington that has been providing borrowers in WA, ID, OR, and CO with a variety of mortgage programs since 1992. We’d love to help you get started on your journey towards homeownership! Please contact us if you have mortgage-related questions.