Home Builders Confidence Index Reaches Highest Increase In Almost Ten Years

The highest increase in US home builder confidence in almost ten years has finally
been seen in July 2012 which marks that there could be even more room for growth as
far as residential real estate is concerned.

According to recent figures, the National Association of Home Builders/Wells Fargo
confidence index has escalated by a total of 6 points which marks the highest increase
ever since September 2002 which brings the total tally up to 35.

It seems that home builders are now more enthusiastic about sales prospects now that
current purchasing activity and the amount of buyers within the country has definitely
seen some improvement.

However, the limitations on job growth paired up with such tight credit standards and
foreclosure problems seem to be among the biggest challenges that the home building
industry could face.

Nevertheless, many stand firm in the belief that the US housing market has definitely
taken a turn for the better as today’s property buyers seem to be more open to the fact
that there are benefits to be gained by taking advantage of the current market situation
with regards to purchasing a new home since property prices are more affordable now
and interest rates are at an all-time low.

The Confidence Survey

Builders were asked to rate whether they felt that the current sales situation was good,
fair, or poor. They were also asked to gauge the possible buyers’ traffic as well as the
overall outlook they expect in the remaining months of 2012.

Results showed that the measure of single-family home purchases at present went up
to 37 in July 2012 which is the highest measure since February 2007. With regards to
the index of sales for the upcoming months, an increase brings the value up to 44 and
anticipated buyer traffic is now at its best since February 2007.

Demand on the Sidelines

There are so many people within the country who have been forced to wait along the
sidelines since things went down seven years ago. Now, many of those people are
eager to move on and be able to take full advantage of the current market situation.

With affordable real estate options, improved household incomes, and mortgage rates
being at an all-time low, it seems that people are more likely to be able to invest on a
home purchase that has been put off due to difficulties that were clearly established in
the past.