On Monday, the index revealed that consumers are more confident about their future than at any time in the last 15 years. Low unemployment, rising wages, record stock market values, home price appreciation, and expectations of growth-friendly policies from the Trump administration are contributing factors.
Even though inventories of homes available for sale are at very low levels, home sales are ending 2016 at the highest levels since the 2008 recession, and demand from home buyers remains high. In addition, there is reason to be optimistic that home builders may pick up their pace of construction next year. A December survey of home builders showed a surge in optimism since the election. Single-family housing starts and building permits are near multi-year highs. Confident consumers and home builders are solid reasons to look for continued improvement in housing market activity next year.
