Tuesday, September 18, 2012

Builder Confidence Highest in Six Years!


Confidence among U.S. homebuilders rose this month to its highest level in six years and many expect the housing recovery will strengthen in the next six months.

The National Association of Home Builders/Wells Fargo builder sentiment index released Tuesday increased to 40 in September. That's up from 37 in August and the highest reading since June 2006, just before the housing bubble burst.


Any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached that level since April 2006, the peak of the housing boom.

Builders also reported seeing the best sales level since July 2006, while turnout by prospective buyers returned to levels not seen since May 2006.

The survey, which is based on responses from 445 builders, has been trending higher since October. After a dismal 2011, homebuilders have seen their fortunes begin to turn around this year as the housing market recovery has steadily gained momentum.

Sales of newly built homes are running ahead of last year, when they sank to the lowest level in a half-century. Sales of previously occupied homes also are up from a year ago. And home prices are increasing more consistently, in part because the supply of homes has shrunk and foreclosures have eased.

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