According to the National Association of Homebuilders’ Housing Market Index, this month marks the highest level of home builder confidence in eight months. In fact, the index shows an increase of two points since October. With any index reading of over 50 points considered positive homebuilder sentiment, industry experts remain optimistic for the remainder of the year’s housing market.

"Demand for housing is increasing at a consistent pace, driven by job and economic growth, rising homeownership rates and limited housing inventory," reported NAHB Chief Economist Robert Dietz. "With these economic fundamentals in place, we should see continued upward movement of the single-family housing market as we close out 2017."

In addition to rising demand, home builders report an increase in sentiment is due in part to the new first-time homebuyers. The majority of these first-time buyers are Millennials, who have waited longer than most to purchase their first homes and thus have more money to spend. As a result, many are skipping the starter homes altogether and instead focusing on bigger, more extravagant properties.

With rapidly expanding job growth and first-time buyers looking to invest more in their properties, homebuilders expect housing starts to continue to surge. Last month alone, housing starts jumped from 1.135 million units to 1.29 - that’s a 13.7 percent increase since September!

As we continue to monitor home builder confidence throughout the country, make sure to stay up-to-date by subscribing to our blog. For more information about buying a home, or to learn more about home financing in general, contact one of our mortgage specialists today.