Jun
19

Builder Confidence Inches Up a Notch in June

June 19, 2012

Builder Confidence PictureBuilders are getting their confidence back, albeit slowly, in this up and down housing market. Like a former prized fighter working hard to get back in shape, builders have inched their way up from the bottom. With each forward step comes an increase in confidence. According to the National Association of Home Builders (NAHB), builder confidence in the market for newly built, single-family homes gained one point in June to 29 on the NAHB/Wells Fargo Housing Index (HMI).

This marks the highest level the index has reached since May 2007.

“This month’s modest uptick in builder confidence comes on the heels of a four-point gain in May and is reflective of the continued, gradual improvement we are seeing in many individual housing markets as more buyers decide to take advantage of today’s low prices and interest rates,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB).

“While the June HMI is in keeping with our forecast for gradually improving single-family home sales this year, recent economic reports that have shown some weakening in the pace of recovery likely factored into the marginal gain,” said NAHB Chief Economist David Crowe. “In addition, builders across the country continue to report that overly tight lending conditions and inaccurate appraisals are major obstacles to completing sales at this time.”

The NAHB/Wells Fargo Housing Market Index is a monthly survey the NAHB has been conducting for the past 25 years. The index gauges builder perceptions of current single-family homes and sales expectations for the next six months as “good”, “fair” or “poor.”

The survey asks builders to rate traffic of prospective buyers as “high to very high”, “average” or “low to very low.” Scores from each facet of the survey are used to calculate a seasonably adjusted index where any number over 50 shows builders view conditions as moving in a positive direction.

For June:

  • Current sales conditions rose two points to 32 (highest level since April 2007).
  • Sales expectations for the next six months remained unchanged at 32.
  • Traffic of prospective buyers also remained unchanged at 23.

The HMI showed that the Midwest registered a five-point gain to 31. The West took in a four-point gain to 33. However, the Northeast slide two-points to 29 as did the South to 26 on the HMI.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

Leave a Comment

Copyright © 2008-2017 mRELEVANCE, LLC | Chicago Real Estate News | Chicagoland Real Estate Forum. All rights reserved. Thank you for visiting Chicago Real Estate News Chicagoland Real Estate Forum, Real Estate Listings and Information Provided by MLC Realty, Inc.
Internet Marketing by Marketing RELEVANCE

Equal Housing Opportunity

1819 W Grand Ave | Chicago, IL 60622