Homebuilder confidence for newly built single family homes reached an important milestone this month, rising to 53, according to the National Association of Home Builders/Wells Fargo Housing Marketing Index. The West region registered a five point gain, to 52. 

"This is the first time that builder confidence has been above 50 since January," said NAHB Chair Kevin Kelly. "It's an important sign that the industry is strengthening as pent up demand brings more buyers into the marketplace."

NAHB's Chief Economist David Crowe observed that an improving market "goes hand in hand with a rise in builder confidence. As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home."

NAHB has been conducting a monthly survey for 30 years, which gauges homebuilder perceptions of current single family home sales and sales expectations for the next six months. Ranging from good, to fair to poor, the survey also asks builders to rate traffic of prospective buyers (high, average, low). Scores are then tabulated from each component, then used to calculate a seasonally adjusted index. Any number over 50 reflects more builders view conditions as good.

Nationally, the sales conditions piece rose four points, to 57; expectations for future sales rose six points, to 67; and gauging traffic of prospective homebuyers rose three points, to 39.

 

   Tweet