Growing Economy Equals Increased Profits
Don’t miss out on capturing your piece of the action.
American Building is Booming
The economy is doing well. Unemployment is at a 50-year low. Wages are up. The building and remodeling industry are still being fueled by low mortgage and equity line rates. Next year, Fannie Mae sees the economy growing at a 2.1 percent clip, up from its prior forecast of 1.9 percent growth.
Homebuilder Confidence is High.
According to the National Association of Home Builders, “homebuilder confidence” reached its highest level since June 1999. Homebuilder confidence reached 76. Anything over 50 reflects a lot of optimism. Overall, the housing market index gained 20 points this year. The biggest increase since 2012.
“Builders are continuing to see the housing rebound that began in the spring, supported by a low supply of existing homes, low mortgage rates and a strong labor market,” said NAHB Chairman Greg Ugalde.
Housing Market Going Up
Fannie Mae expects single-family housing starts and building permits to climb by 10 percent next year and new home sales to increase by 5 percent. Fannie Mae is predicting U.S. residential fixed investment growth to close at 4.5 percent for 2019 and be at 3.4 percent for both 2020 and 2021.
Fannie Mae Senior Vice President and Chief Economist Doug Duncan commented, “Despite the expected increase in the pace of construction, the supply of homes for sale remains tight and strong demand for housing is continuing to drive home prices higher, particularly in the more entry-level price tiers.”
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| “Things are looking good for next year, thanks to low interest rates and the strong job market. We’re hoping for a big, big year next year.“ Jerry Howard, NAHB President and CEO |
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Plan for Big Sales
Next year the U.S. economy is forecasted to keep growing. So get going. Entice your customers now. Grab market share. Increase your marketing to capture your clients before another business does. Plan and position your company to seize as much business as possible. Go Big in 2020.
Sources: Fox Business, National Association of Home Builders/Wells Fargo Housing Market Index
by Kathy Latus