Homebuilder confidence soared to record high in September as low mortgage rates, locked down amenities, rising crime, closed city schools, and urban rioting sparked a surge in demand for suburban homes.
The NAHB/Wells Fargo Housing Market Index rose five points to the new record high of 83, the National Association of Home Builders said Wednesday.
The survey asks builders of single family homes to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes.
Demand is so strong that the prices of materials, particularly lumber, are increasingly worrying home builders.
“Lumber prices are now up more than 170% since mid-April, adding more than $16,000 to the price of a typical new single-family home,” said NAHB Chief Economist Robert Dietz. “That said, the suburban shift for home building is keeping builders