Builder Confidence At Highest Level since 2007
Aug 20, 2012
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U.S. home builder confidence in the single-family home market improved in August 2012 for the fourth month, showing a gain to 37 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The two-point increase in August comes after a six-point increase in July.
The gain brings the index to its highest level since February of 2007.
Every component of the index was up in August and all were at their highest levels in more than five years:
* current sales conditions: up three points to 39
* traffic of prospective buyers: up three points to 31
* sales expectations in the next six months: up one point to 44
"From the builder's perspective, current sales conditions, sales prospects for the next six months and traffic of prospective buyers are all better than they have been in more than five years," said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, FL. "While there is still much room for improvement, we have come a long way from the depths of the recession and the outlook appears to be brightening."
"This fourth consecutive increase in builder confidence provides further evidence of the gradual strengthening that's occurring in many housing markets and providing a needed boost to local economies," said NAHB Chief Economist David Crowe. "However, we are still at a very fragile stage of this process and builders continue to express frustration regarding the inventory of distressed properties, inaccurate appraisal values, and the difficulty of accessing credit for both building and buying homes."
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