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All the markets but you know home builders are feeling a little bit more confident about.
This market we thought it would be a great day today you exclusive technology haired Fox Business.
What is it costs to build.
A home these days piece by piece let's start with the foundation carried out.
But at 161033.
Dollars to build the foundation let's move on to the framing of the home.
But now you're 4600375.
The roof got to have a roof right take a look at that Snyder 52000.
At and some plumbing plumbers are expensive but so -- the material costs 6000581.
Not you -- into your electrically added your electrical and you're hungry -- now 172000.
And while shouted at electricians does that make some good money take a look at this now with added in the heating the AC for the home 80000 moving onto the floors not -- 88 grand and change the walls here we go you gotta have walls right I had had -- -- -- hate that's pretty pictures on.
Now you're -- over a 100000 dollars to build a number this is not to -- this is to build a home.
-- -- been to the windows and this is the national average of this is.
We just had to take all the host of the country -- them out.
-- when desired -- 107000 dollars on a national scale forget New York about the whole other story the exterior that and hired a 1151000.
If -- -- choose to do that a lot of home bill is these days do you throw that -- the cost of a home.
A -- a 125 grant and then finally.
All others extra costs and about how -- -- thousand dollars a look.
It is expensive but to build a home if your home builder not I don't wanna sell this may be right well as I mentioned earlier home builder confidence.
Near an eight year high for the month of August at three points from last month were at 59 -- -- nicely above fifty.
On the housing market index.
Anything over fifty is -- and this is all according to data from the national association of homebuilders let's bring in from Washington in a box.
Jerry Howard the CEO of the NHB Jerry.
Again a nice build despite the fact that interest rates were going up port of the builders tell you.
But the -- -- all across the country don't talking to -- or tell me one thing.
And that is that motivated buyers are sort of walk through the doors again and that's what's bringing confidence up pretty much across -- One thing I saw -- -- you know again this this this builder survey in a look at this every month current sales there was a jump up three points at a -- optimistic about current sales.
But there's six month expectations only -- a point is there a little bit of nervousness.
About what the rest of the era's gonna hold -- -- any of that type -- to the fat.
Well there's there was this about capital supply yes both at the front end of the pipeline.
Builders are nervous about be able to get loans for acquisition development and construction.
And then at the consumer end as well as it's still extremely difficult to get a mortgage so that's what sort of holding.
-- over expansion of confidence in place a little bit and unfortunately it's what's holding the economic recovery from coming back full force.
-- one of the things that was just him was showing our viewers piece by piece what -- cost to build a home that is what your members.
Were you in the month of June though we did see construction spending actually did just a little bit of -- -- if that was a pullback.
That -- Elizabeth point 6% it was a huge but -- -- about pullback was something that your members -- saying for the month of June is that season all.
Is that it -- straight what does that.
Think you see -- different construction spending a little bit because of of interest rates start to creep up.
That's probably the significant cause there.
One of the things I also like to look at is is where the hot housing markets -- and this is.
Not just new home sales which of course -- your bread and butter but certainly existing themselves as well most of those markets now are in California.
What are the builders telling you about California and the west overall.
Well California in the west overall is naturally growth area as the economy -- in those areas particularly those parts of the west -- have to do.
With energy and natural resources and manufacturing.
As they improve again the housing markets heat up so it's not surprising but it's also driven in part by the fact.
That foreclosures are way down an existing inventory on the markets are down so people -- starting to -- It's nice to see that I am curious so also when we talk to the builders and and you have -- course off record conversations as well as on the record conversations -- it's going to be published some of the you don't.
But I'm curious at what if they're concerned at all about the employment picture were saying.
Again today they got a little bit of a drop in initial claims but -- -- -- back to where we're having true job creation we're not seeing job creation its -- Giving us higher paying jobs to different look at that type of data when they decide whether -- not to build a certain area of the country.
Yes of course they look at employment but the most of the builders are telling me either one of the reasons that employment is not coming back.
Is because we're not back at full force right now in those builders and are working are having trouble finding labor themselves so it's sort of -- a cycle that's created.
And once the capital gets back in the market we will create jobs that'll help employment and we will also -- spur the economy.
I think were really on the threshold of coming through with great guns.
It's nice to see the optimism -- certainly is that -- this group -- these stocks have been on its -- Jerry Howard it's great to see you again and we'll see you come up thank you Jerry and I hope so thank you and.
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