Chart: More New Home Buyers on the Way

A recent survey suggests new single-family home sales will increase significantly in the first half of 2018, which is good news for component manufacturers across the country.

The Conference Board’s Consumer Confidence Index tracks, among many things, the share of respondents planning to buy a new home within six months. According to the latest survey in December, there were 1.7% of respondents planning to buy a new home within six months, higher than 1.1% in November. While highly volatile, the share of respondents planning to buy a new home within six months has been moving upward since the economic recovery took effect in 2012.

According to analysis by NAHB, the running average of this index tracks very closely with new single-family home sales, per the chart below. Per NAHB, this figure, “shows both new single family home sales and the share of respondents planning to buy a new home. The red line represents new single family home sales one-month ahead since 1978. The blue line shows the share of respondents planning to buy a new home within six months over the same time. Reports suggests that a prospective buyer signs a contract within 30-60 days. The dashed line is the six-month moving average of the blue line to smooth the monthly volatility.”

Check out this extra section in each digital issue of SBC Magazine for additional news, perspective, and advertiser content. Learn more and access 2016-2017 archives here.