New home construction plays an important role in the overall economy. That’s why the National Association of Home Builders’ Housing Market Index is a closely watched barometer for the health of the housing market. The index asks home builders how confident they are in the market, how much buyer traffic they’re seeing, and what their expectations are for the next six months. According to the most recent results, confidence plunged in April to its lowest level since 2012. Robert Dietz, NAHB’s chief economist, says the impact of the coronavirus has disrupted building activity but he believes the effects will be temporary. “While the virus is severely disrupting residential construction and the overall economy, the need and demand for housing remains acute,” Dietz said. “As social distancing and other mitigation efforts show signs of easing this health crisis, we expect that housing will play its traditional role of helping lead the economy out of recession later in 2020.” Prior to the outbreak, new home sales were at their highest pace in years and residential construction was improving. The strength of the new home market before the virus hit offers hope that it can rebound quickly once mitigation efforts begin to ease. (source)

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