OpinionIndustry News

It’s a great time to be a home builder

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The economy continues to recover, as real GDP advanced a very healthy 4.4 percent in 2004, which was the best performance since 1999. Incomes and job creation are on the rise. Mortgage rates remain very low. Sales are high and unsold inventory levels are low. The Housing Market Index stands at 70. While some markets are stronger than others, overall, this has to be the best month ever to be a home builder. Our grading system of the economy and the housing market is a "bell curve" model, with statistics at an all-time high receiving an "A," statistics near the long-term average receiving a "C," and the worst times ever receiving an "F." In this grading system, it is OK to be a "C" student. Here is our current report card: Economic Growth: C The economy grew at a 3.1 percent clip in the 4th quarter of 2004, which was below expectations primarily due to the international trade account deficit. However, for all of 2004, the U.S. economy grew by 4.4 percent, well above its long-term avera...