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Chicago Home Builder Sentiments Improving

July 30, 2012

Chicago New Homes See Increase In Confidence LevelsAccording to the National Association of Home Builders (NAHB), home builder sentiment has taken its biggest leap in nearly a decade, showing signs of housing market turnaround. The NAHB/Wells Fargo Housing Market Index (HMI) increased to 35 from 29 in June, making for the biggest jump since September of 2002.

Beating economists’ expectations of 30, the index was at its highest level since March 2007. The index has more than doubled since July of last year, but it is still well off the 50 mark that shows more builders view market conditions as favorable than poor. The index has not been above 50 since April 2006. Even as growth in other parts of the economy slows, recent data has suggested the housing industry is stabilizing, which is great news for Chicago real estate buyers and sellers.

“This report adds to the growing acknowledgement that housing – though still in a fragile stage of recovery – is returning to its more traditional role of leading the economy out of recession,” said NAHB chief economist David Crowe.

“This is particularly encouraging at a time when other parts of the economy have begun to show softness, and is all the more reason that the challenges constraining housing’s recovery – namely overly tight lending conditions, poor appraisals and the flow of distressed properties onto the market – need to be resolved.”

Since February 2007, the single-family home sales rose to its highest level at 37 from 31. The gauge of single-family sales expectations for the next six months climbed to 44 from 33, while prospective buyer traffic climbed to 29 from 23.

About The Author

Read All Stories By Brittany Henderson

Brittany Henderson is currently the salon coordinator at Accent On Hair, Inc. in Augusta. Accent On Hair has been in business for 30 years! In the summer of 2012, she was a public relations intern at Marketing RELEVANCE. She writes news releases and blog posts about everything real estate.

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