Homebuilders haven’t been this confident about sales, the outlook of future sales, and buyer traffic since June 2006, which is right before the housing crisis took hold, a new index shows.
For September, the National Association of Home Builders/Wells Fargo builder sentiment index, which measures builders’ outlook on current sales, future sales, and buyer demand, reached its highest level in six years. Plus, homebuilders expect the housing recovery to strengthen within the next six months.
Homebuilders say they’ve experienced some of the best sales levels they've had in six years, and buyer traffic has returned to May 2006 levels, the index shows.
"We think things have turned around and this recovery is sustainable," Patrick Newport, an economist with IHS Global Insight, told the Associated Press.
The index has been edging higher since last October, coinciding with reports that show sales and home prices inching up too.
Source: “Index of US Homebuilder Confidence Improves; Builders Anticipate Sales Strengthening into '13,” Associated Press (Sept. 18, 2012)