Home builders have grown more optimistic, with expectations for future sales driving the brightened outlook. Builders in the South are most optimistic.
As of this month, the National Association of Home Builders/Wells Fargo Housing Market Index was at a level of 60.
A reading of more than 50 indicates that there are more builders who view conditions as good than those who see market conditions as poor.
The index reflects results from a survey reported by the NAHB. The trade group has been conducting the survey for 30 years.
NAHB noted that June’s index
was higher than it’s been during any month since November 2005.
NAHB Chairman Tom Woods noted in the report that the strengthening in builder confidence is an indication that housing continues to improve at a steady pace.
“As we head into the second half of 2015, we should expect a continued recovery of the housing market,” Woods stated in the report.
The index was the same as the June index, which was revised up.
One of three components that make up the index is a gauge of current sales conditions, which was up one point from the previous month to 66.
Also increasing was the reading on expectations for new home sales during the next six months, which was up two points from June to 71.
But the component that measures buyer traffic was down a point to 43 in July.
The index was highest in the South at 61
and lowest in the Northeast at 47. A three-point gain was reported for both the Northeast and West.
