Homebuilder confidence for the newly built single-family home market posted its largest one-month gain since September 2002, according to a July housing index by the National Association of Home Builders/Wells Fargo. The giant leap helped lift homebuilder confidence to 35, its highest level since 2007. Confidence gains were posted in every region of the country too.
So why is homebuilder confidence suddenly soaring?
The index showed gains in homebuilder confidence over rising sales conditions, prospects for future sales, and traffic of prospective buyers.
“This is greater evidence that the housing market has turned the corner as more buyers perceive the benefits of purchasing a newly built home while interest rates and prices are so favorable,” says Barry Rutenberg, NAHB chairman.
David Crowe, NAHB’s chief economist, also notes that the increase in builder confidence is “particularly encouraging at a time when other parts of the economy have begun to show softness.”