U.S. builders’ confidence reaches five-year high

Miami /
Jun.June 18, 2012 02:15 PM

Home builder confidence inched up a single point in June and reached its highest level since May 2007, according to the Housing Market Index released today by the National Association of Home Builders and Wells Fargo. The uptick follows a 4-point rise in May and brings the confidence level to 29. When the index surpasses 50 more builders view conditions in the single-family home market as good than do poor.

While the rising confidence level does keep in line with the gradual improvements the NAHB has been expecting, the agency’s chief economist, David Crowe, noted that “recent economic reports that have shown some weakening in the pace of recovery likely factored into the marginal gain.” Crowe added that tighter lending standards continue to present an obstacle to home builders.

Builders have reported confidence levels between 24 and 29 for each of the first six months of 2012 following 40 months where the index surpassed 20 just twice.

The index is derived from three components: current sales conditions (which rose 2 points to 32), sales expectations for the next six months (unchanged at 34) and prospective buyer traffic (unchanged at 23). At 32, builders reported current sales conditions to be at their best since April 2007.

In the Northeast and South, the index fell 2 points to 29 and 26, respectively, while the Midwest posted a 5-point gain to reach 31 and the West’s index jumped 4 points to 33. — Adam Fusfeld


Related Articles

arrow_forward_ios
(Getty)
Active agents in Miami drop 36% in a year, as market cools
Active agents in Miami drop 36% in a year, as market cools
Miami-Dade County mayor Daniella Levine Cava, Citadel's Ken Griffin
Ken Griffin kicks in $3M to Miami-Dade fund for housing, other initiatives
Ken Griffin kicks in $3M to Miami-Dade fund for housing, other initiatives
Homes
South Florida home sales plunge, prices in flux in the fourth quarter
South Florida home sales plunge, prices in flux in the fourth quarter
From left: LeBron James, Ken Griffin, Miami-Dade Mayor Daniella Levine Cava, Jeff Bezos, Vlad Doronin, and Stephen Ross (Getty)
Here’s what went down in South Florida real estate in 2022
Here’s what went down in South Florida real estate in 2022
Miami skyline
South Florida home sales keep falling as price growth slows
South Florida home sales keep falling as price growth slows
(Illustration by The Real Deal with Getty)
“It’s not dead, it’s just different.” South Florida resi slowdown persists
“It’s not dead, it’s just different.” South Florida resi slowdown persists
Danielle Hale
Slowdown is “paradoxical:” Realtor.com’s chief economist on Miami housing market’s future
Slowdown is “paradoxical:” Realtor.com’s chief economist on Miami housing market’s future
From left: Ansorg Development's Karl-Ulrich Ansorg, Tulip Group's Kobi Elbaz, Ofir Gabriel, and Amit Kort in front of 234-264 Northeast 34th Street in Miami (Getty, Google Maps, YouTube/Tulip Group Thailand, usbotschaftberlin, Public domain - via Wikimedia Commons)
Inside look at planned Edgewater mixed-use condo tower
Inside look at planned Edgewater mixed-use condo tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...