Builders who took part in the NAHB’s most recent confidence survey are feeling bullish about the market’s current state.
The National Association of Home Builders/Wells Fargo Housing Market Index for July increased four points to 53 on a 100-point scale. It measures the confidence among builders in the market for new single-family homes.
"This is the first time that builder confidence has been above 50 since January and an important sign that it is strengthening as pent-up demand brings more buyers into the marketplace," said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del.
Builders surveyed are asked about their perceptions on current single-family home sales expectations for the next six months, rating them as "good," "fair" or "poor." They are also asked to judge customer traffic as "high to very high," "average" or "low to very low."
The scores create a seasonally adjusted index where a number above 50 indicates that a majority of builders view conditions as good.
"An improving job market goes hand-in-hand with a rise in builder confidence," said NAHB chief economist David Crowe. "As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home."