Tuesday
August 22, 2017

Builders Upbeat From 'Committed Buyers'

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Builders Upbeat From 'Committed Buyers'

An index measuring builder confidence in the newly built, single-family market rose five points in June to the highest reading this year. It's also the highest average since September 2014, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

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"Builders are reporting more serious and committed buyers at their job sites and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum," says NAHB Chairman Tom Woods.

The builder's sentiment index shows current and future sales expectations are at their highest level since the last quarter of 2005, indicating growing optimism among builders that is expected to only strengthen in the months ahead, says NAHB Chief Economist David Crowe.

The survey measures current and future sales expectations. Any reading above 50 indicates more builders view conditions favorably than poor. In June, all three index components posted healthy gains, according to NAHB.

The component measuring current sales conditions surged seven points to 65, while the index reflecting sales expectations in the next six months rose six points to 69. The component measuring buyer traffic gained five points in June to 44.

Regionally, the South and Northeast each rose three points to 60 and 44, respectively. The West posted a two-point gain to 57 while the Midwest dropped by one point to 54. 

Source: National Association of Home Builders