Home builders in the U.S. are gaining confidence since May housing index for new single-family homes seen the highest levels in 33 months. According to the National Association of Home Builders, the housing market index rose three points in May after a four-point increase in April.
This is the highest point index since August 2007. Although the housing index is still weak at 22, which had only been recorded to happen twice in 25 years, this is a sign of a recovering housing market.
“Builders are more comfortable that the market is truly beginning to recover,” said David Crowe, chief economist for the Builders’ Trade Group. “The really encouraging part of today’s HMI is that sales expectations for the next six months continued to gain….”
The growing housing index spread to all four regions within the U.S. in May. With a two-year high in both the South and West regions and a three-year high in the Northeast region, home builders throughout the nation are encouraged by the index report.
The report came out just one day before the Department of Commerce reported on the housing starts and building permits for April, the home builders’ index is well correlated with housing starts (number of new homes which construction has been started on) according to MarketWatch.
MarketWatch economists also are looking for housing starts to rise nearly 4 percent. This would be the highest level of housing starts since November 2008, however this is nowhere near the January 2005 peak of 2.27 million home starts.
*Quote from MarktWatch
That has to be good news, Unfortuately in Marbella we dont have the same confidence.
We are definitely seeing the market recover in Scottsdale AZ. The prices are stabilizing and starting to increase in many areas. Homebuilders are also starting more spec homes, which is a definite change of pace.
It seems that the economy is starting to recover… then truly the market do so… Seeing these good numbers in the market adds hope to home builders and the like. Reading this post gives ideas and awareness for everyone that the market is not dropping but still moving towards development and growth even in a slow pace. Keep posting great blogs!
That’s great news to hear. We have definitely seen an increase in buyers here in Metro Atlanta. Hopefully the trend continues!
A few of the custom builders in our market are beginning to purchase distressed finished lots in premier neighborhoods thereby, reducing their overall build cost. It’s nice to see some movement.
.-= Grant Hammond @ Nashville Homes´s last blog ..April 2010 Nashville Real Estate Market Analysis =-.
Finally, the economy on the way up. Hopefully the number of empty homes in my area will start to full. The place was looking like a ghost town.
.-= glass cutter´s last blog ..Glass Cutter =-.
This is definitely a good sign of progress. I sincerely wish it prevails for a longtime and every household should make the best of this situation. Reaching high levels in 33 months is not that easy thing to shrug off. I am sure experts out there are looking into this.
Things have been looking up, but lets hope that theres not a cash for clunkers affect after the tax credit expiration.
There is a market recover in most places and our biggest problem is buyers expectations at what they can buy property for and obviously the lending institutions not lending.
.-= Spanish Hot Properties´s last blog ..Costa del Sol Property Viewings up 400% in May =-.
Matt that is awesome to hear that you have seen an increase in buyers in the Metro Atlanta area!
Hi Carmen, we are seeing the same kind of activity here in southern California. As always, I look forward to your comments
I can certainly say that I have seem a marked drop in home sales and interest since the conclusion of the Federal tax credit.
.-= Grant Hammond @ Nashville Real Estate´s last blog ..Is Walking Away from your Mortgage Smart? =-.