According to National Association of Home Builders (NAHB)/ Wells Fargo & Co. (NYSE: WFC) Housing Opportunity Index (HOI), Housing is becoming more affordable across the U.S. The median price for a home was $250,000 in Q4 of 2016, now in Q1, the median price is $245,000. Great news for people looking to buy homes. The amount of existing and new homes that sold in Q1, over half at 60.3 percent, were affordable homes. Meaning, people with the median income of $68,000 could afford them.
Granger MacDonald, Chairman of NAHB, a home builder and developer stated “This report shows that builders’ optimism in the housing market is solidifying, even as they deal with higher building material costs and shortages of lots and labor,” Robert Dietz, Chief Economist of NAHB stated: “…Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”
The sales expectations for the rest of the year are to continue on an upward trend as stated by Mr. Dietz, “NAHB anticipates that housing will continue on a gradual, upward path throughout the year.” According to NAHB, the Home Market Index (HMI), Sales is rated above 50, which is indicated as being good conditions. The current HMI rating, based from Q1 2017, is 76. On the moving average of three months, homebuilder sentiment in the Northeast rose 3 points to the rating of 49, the South also rose 3 points to the rating of 71. In the West, the index rose 1 point to a rating of 78 and the Midwest was unchanged at rating of 68.
The National Association of Home Builders (NAHB) is a Washington-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB’s builder members will construct about 80 percent of the new housing units this year.