Builders continue to feel more
optimistic about the direction of the recovery for newly built
single-family homes. Builder confidence rose six points in July to 57,
according to the National Association of Home Builders/Wells Fargo
Housing Market Index. Any number above 50 indicates more builders view
conditions as good than poor.
The index gauges builders’ perceptions on single-family home sales,
sales expectations for the next six months, and buyer traffic. The gauge
for current sales condition rose to its highest level since early 2006,
and the index’s measurements for prospective buyers and sales
expectations for the next six months rose to the highest levels since
late 2005. The latest report also showed improvements in builder
confidence has expanded across every region of the United States.
"Builders are seeing more motivated buyers coming through their doors
as the inventory of existing homes for sale continues to tighten," says
NAHB Chief Economist David Crowe. "Meanwhile, as the infrastructure
that supplies home building returns, some previously skyrocketing
building material costs have begun to soften."
Source: National Association of Home Builders