by Myles Biggs
At the end of May, several reports indicated that consumer
confidence levels in the economy, housing and labor markets were on the rise.
This month, according to the National Association of Home Builders/Wells Fargo
Housing Market Index (HMI), builder confidence increased a total of eight
points – from 44 to 52 – in the single-family homes market. This is the largest one-month gain in the HMI since 2002, when it also jumped 8 points. HMI readings over 50 are
an indication that more builders view both sales and housing market conditions
as positive, rather than negative.
In a press release
issued yesterday by the NAHB, Chairman Rick Judson stated: “This is the first
time the HMI has been above 50 since April 2006, and surpassing this important
benchmark reflects the fact that builders are seeing better market conditions
as demand for new homes increases.” Judson went on to state that low inventory
numbers of existing homes are continuing to push home buyers toward new home
Housing growth continues to be a strong economic indicator
and this link between consumer confidence and the confidence of home builders
will be a key component in U.S. economic recovery projections.
As a consumer or potential home buyer, does this
announcement of increased home builder confidence improve your outlook on the
housing market or the overall economy? Give us your opinion in the comments