Builders Report Rising Interest In New Homes

The National Association of Home Builders Housing Market Index measures how confident builders are in the market for newly built single-family homes. The index scores their responses on a scale where any number above 50 indicates more builders view conditions as good than poor. In June, builder confidence jumped five points to 59, the highest reading since September 2014. Traditionally, builder confidence has been seen as a good gauge of the strength of the new home market because of builders’ unique perspective. Recent improvements are a good indication that there is rising foot traffic and more interested buyers looking to purchase a new home this year. “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,” NAHB chairman Tom Woods said. In fact, the components measuring current and future sales expectations were both up significantly from last month and are now at levels last seen in 2005. More here.

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