According to a report issued by the National Association of Home Builders [NAHB], builder confidence jumped in December, reflecting the strength of a resurging economy. The NAHB monthly reading of homebuilder sentiment climbed 5 points to hit 74, which is the highest reading since 1999. This reading stood at 69 in December 2016.
One of the reasons for the surge in sentiment is that builders now see the business incentives in the new Trump tax plan as outweighing negatives that they believed would reduce incentives for home owning.
Buyer traffic is also a contributing factor affecting sentiment due to the severe shortage of existing homes for sale. Many builders are ebullient over the fact that Realtors are reporting the lowest supply on record and are not expecting the situation to improve anytime soon. Even with the brisk number of sales taking place despite supply shortage, builders don’t see demand letting up anytime soon.