Homebuilders confidence this past month fell due to the increased demands for new homes which may exceed ready to build land, materials and workers. This cause for concern may lead to sales decreasing in the short term, however builders' outlook for sales in the upcoming future are strong and could possibly reach highs not seen in almost six years. An improving job market along with low mortgage rates and higher home prices have helped homes in the United States over the past year and sales increased among new homes as much as 16% this past January. The highest level the United States has seen since July 2008. However, even with these positive signs, builders are still facing higher costs for materials and competition for land cleared for development. Builders also have reported a shortage of workers in markets where residential construction has rose quickly even with a 3.1% increase in residential construction workers in February. This is due to many construction workers leaving the field and joining other areas such as the oil and natural gas industries. New homes only represent a portion of the housing market but are able to provide the economy with an average of three new jobs for an entire year and about $90,000 in tax revenues for our economy. While I don't think we should panic seeing these numbers, it is definitely a subject we should keep paying close attention to.
http://www.usatoday.com/story/money/business/2013/03/18/builder-confidence-falls-march/1996297/
It is very interesting how builders are struggling to find a labor force to work in the construction field. Unemployment is a very big topic today due to the notoriously high rates, while construction is a job within the capabilities of most Americans. I expect these job opening to be filled soon, and this should be a good boost to our economy.
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