Home Builder Confidence at Highest Level Since 2006

September 28, 2012

home builder confidence on the riseGood news for the Chicago real estate industry and Chicago home builders!

The National Association of Home Builders/Wells Fargo builder sentiment increased to 40 this month, which is the highest number since June 2006, the same year the housing bubble burst.

The way the builder sentiment reading works is that any reading below 50 indicates builders are experiencing negative sentiment about the housing market. The sentiment reading has not reached 50 or higher since April 2006.

However, builders’ outlook for sales in the next six months did reach 51, which is an increase from the August number of 43. Builders also revealed that their sales were at some of the best levels since July 2006 and prospective buyer turnout was also nearing 2006 levels.

These numbers are further proof that the housing market is on its way to further improvement. Home prices have increased more consistently and mortgage rates are currently at near record lows.

The builder sentiment and outlook survey is based on responses from 445 builders. The readings have been trending higher since last October, and home builders remain optimistic for the future.

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