Builder Confidence Rises as Buyers Gain Motivation

Builder Confidence Rises as Buyers Gain Motivation

For the third consecutive month, the National Association of Home Builders/Wells Fargo Housing Market Index experienced a monthly gain. In July, the index rose six points from June to 57, representing the strongest reading since January of 2006.?

“Today?s report is particularly encouraging in that it shows improvement in builder confidence across every region as well as solid gains in current sales conditions, traffic of prospective buyers and sales expectations for the next six months,” noted NAHB Chairman Rick Judson, a home builder from Charlotte, N.C.?

However, he cautioned that this positive momentum could be disrupted by threats on the policy side, particularly with regard to the mortgage interest deduction and federal support for the housing finance system.?

“Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten,”?noted NAHB Chief Economist David Crowe. “Meanwhile, as the infrastructure that supplies home building returns, some previously skyrocketing building material costs have begun to soften.”?Read More…

By Megan Hopkins

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