Homebuilder Confidence Rises to a Seven-Year High
Washington, D.C., June 17, 2013—Builder confidence in the market for new single-family homes leaped eight points in June to a reading of 52 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
The June reading marks the first time the HMI has been over 50 since April 2006, and it is also the biggest one-month gain since September 2002.
According to David Crowe, chief economist for the National Association of Home Builders, “Builders are experiencing some relief in the headwinds that are holding back a more robust recovery. Today’s report is consistent with our forecast for a 29% increase in total housing starts this year, which would mark the first time since 2007 that starts have topped the one million mark.”
The HMI, which is derived from a monthly survey, gauges builder perception of current single-family home sales and expected sales for the following six months, and it also asks builders to rage the traffic of prospective buyers.