Home builder confidence has hit the highest level in seven years, as
demand increases for new homes, according to data released today by the
National Association of Home Builders.
The NAHB's Housing Market
Index leapt eight points in June, the biggest one-month gain since
August and September of 2002, the association reports.
The index hit 52 on the NAHB's scale, the first time it has crossed 50 since 2006.
this important benchmark reflects the fact that builders are seeing
better market conditions as demand for new homes increases," said NAHB
chairman Rick Judson. "With the low inventory of existing homes, an
increasing number of buyers are gravitating toward new homes."
three HMI components posted gains in June, including builders'
perspective on current sales conditions, future sales and traffic of
"Builders are experiencing some relief in the headwinds that are holding
back a more robust recovery," said NAHB chief economist David Crowe.
"Today's report is consistent with our forecast for a 29 percent
increase in total housing starts this year, which would mark the first
time since 2007 that starts have topped the 1 million mark."
The HMI three-month moving average was up in three of the four regions, with the largest growth reported in the South.