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Happy days again for builders

By Judy Martel · Bankrate.com
Monday, June 17, 2013
Posted: 4 pm ET

The housing market reached a significant milestone this month, with builder confidence soaring from May to June and reaching its highest level in more than seven years.

The monthly survey by the National Association of Home Builders, or NAHB, saw an 8-point increase since May, the biggest one-month gain since the summer of 2002. The NAHB/Wells Fargo Housing Market Index now stands at 52, above the score of 50 that separates positive and negative sentiment.

"This is the first time the (index) has been above 50 since April 2006, and surpassing this important benchmark reflects the fact that builders are seeing better market conditions as demand for new homes increases," NAHB Chairman Rick Judson said in a statement.

All three components of the index, which gauges perceptions of single-family home builders, moved into positive territory from May to June. Current sales conditions rose from 48 to 56; expectations of future sales rose 9 points to 61, and prospective buyer activity increased from 33 to 40.

The index is an important factor for investors who are watching housing starts, and this month gives them reason to celebrate, according to David Crowe, the NAHB's chief economist. The results of the survey are "consistent with our forecast for a 29 percent increase in total housing starts this year, which would mark the first time since 2007 that starts have topped the 1-million mark," he said in a statement.

For prospective homebuyers, new homes are attractive because of low inventory in existing homes for sale, Judson noted in the press statement. Buyers are also eager to close on homes while mortgage rates remain low.

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6 Comments
John
June 19, 2013 at 5:31 pm

this is FAKE

beware if the coming collapse and crash

windowking
June 19, 2013 at 12:26 pm

We are bidding jobs at cost and homeowners still won't sign on the dotted line. what everyone doesn't realize, is that companies must make profit or no one get hired the no taxes get paid, the reputable company will go out of business and the only contractors left will be the ones we all complain about....why because all you homeowners wanted to cheapest price not quality you can't have both. i am fed up with homeowners driving jobs so low companies are closing their doors.

windowking
June 19, 2013 at 12:22 pm

We have had a family owned home improvement company since 1952, it makes me sick to see all these false reports that things are getting better. the residential remodeling industry is tanked, if you are lucky enough to sell a job, there's no profit left on the bone to hire anyone. jobs if sold are being given away, and if they consider that an increasingly bettering economy, we are in bigger trouble than you all realize.

jeff tenk
June 19, 2013 at 3:43 am

now maybe i can get my way of living back by getting a job as a carpenter i am a frame carpenter and was in the union in tampa i even went to trade school in 1998 at votech no i am not a certfied jerneymen but i should be as long as i have been framing after the housing market tanked in 2007- 2008 i have been working out of a labor pool setteling for a measly 7.50 what ever minimum wage is it sucks especilly if you use to making 500-700 a week now im lucky if i can find that but beggers cant be choosy so the moral of my story is SOMEBODY OUT THEIR PLEASE!PLEASE!PLEASE HIER ME ON ITS THE BEST DECISION YOU WILL HAVE MADE IN A LONG TIME
JEFF TENK