Builder Confidence Rises Six Points in JulyJuly 16th, 2013 by DWM Magazine
Builder confidence in the market for newly built, single-family homes rose six points to 57 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for July, released today. This is the index’s third consecutive monthly gain and its strongest reading since January of 2006.
“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 homebuilding returns, some previously skyrocketing building material costs have begun to soften.”
All three HMI components posted gains in July. The component gauging current sales conditions rose five points to 60—its highest level since early 2006. Meanwhile, the component gauging sales expectations in the next six months gained seven points to 67 and the component gauging traffic of prospective buyers rose five points to 45—marking the strongest readings for each since late 2005.