WASHINGTON – More builders view sales conditions for newly built single-family homes as good rather than poor, reports the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Builder confidence in the market for newly built single-family homes rose 4 points in July to a reading of 53.
"This is the first time that builder confidence has been above 50 since January and an important sign that it is strengthening as pent-up demand brings more buyers into the marketplace," said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del.
"An improving job market goes hand-in-hand with a rise in builder confidence," said NAHB Chief Economist David Crowe. "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."
The HMI index tracking current sales conditions grew 4 points to 57, while the index gauging expectations for future sales jumped 6 points to 64. The HIM index measuring traffic of prospective buyers rose 3 points to 39.
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