The confidence of US homebuilders in the market has climbed back to 2007 levels, according to the National Association of Home Builders.
The association's latest index, released this week, shows that confidence for new build single-family homes gained five points in May following a dip in April, reaching a level of 29 - the index's strongest reading since May 2007.
"Builders in many markets are reporting that buyer traffic and sales have picked back up after a pause this April," commented Barry Rutenberg, chairman of the NAHB and a home builder from Gainesville. "It seems we have resumed the gradual upward trend in confidence that started at the beginning of this year, as stabilizing prices and excellent affordability encourage more people to pursue a new-home purchase."
"While home building still has quite a way to go toward a fully healthy market, the fact that the HMI has returned to trend is an excellent sign that firming home values, improving employment and low mortgage rates are drawing consumers back," said NAHB Chief Economist David Crowe. "The pace of this emerging recovery could be stronger were it not for the significant impediments that the market continues to face with regard to builder and consumer access to credit, inaccurate appraisals, and more recently, rising materials prices."
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