Homebuilder confidence spikes, but remains in negative territory

Jul.July 17, 2012 01:00 PM

Construction workers apparently have reason for optimism. Builder confidence for newly built, single-family homes has risen a total of six points this month, bringing the total to 35 — the largest one-month gain in more than a decade and the highest level since March 2007, according to a press release issued today by the National Association of Home Builders and Wells Fargo.

Scores above 50 represent positive sentiments on the 1–100 scale. Still, the July number follows a series of upticks. As The Real Deal previously reported, builder confidence reached 29 in May — a 4-point rise from April. June also came in at 29.

“Combined with the upward movement we’ve seen in other key housing indicators over the past six months,” David Crowe, NAHB’s chief economist, said in the release, “the report adds to the growing acknowledgement that housing —though still in a fragile state of recovery — is returning to its more traditional role of leading the economy out of the recession. This is particularly encouraging at a time when other parts of the economy have begun to show softness.”

As The Real Deal previously reported, May saw growth in single-family home sales: a 7.6 percent month-over-month increase and a 19.8 percent year-over-year jump. — Zachary Kussin

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