Builder confidence ticked up in June to reach the highest level seen since May 2007, according to the National Association of Home Builders/Wells Fargo Housing Market Index, released today. The index was up one point for the month for a reading of 29, a 123% improvement year-over-year.
"This month’s modest uptick in builder confidence comes on the heels of a four-point gain in May and is reflective of the continued, gradual improvement we are seeing in many housing markets," said Barry Rutenberg, the NAHB’s chairman.
The index’s improvement came from the component measuring current sales conditions, which gained two points to a reading of 32—the highest seen since April 2007. The components tracking sales expectations for the next six months and prospective-buyer traffic were both unchanged at 34 and 23, respectively.
"Readings on traffic remain well below the historical average," said David Goldberg, vice president of investments at UBS, in a statement. "Further, even as traffic levels improve, we expect mortgage liquidity constraints to persist, limiting the pace of a rebound relative to historical trends."
See the NAHB’s full builder confidence report for June.
Claire Easley is senior editor-online at Builder.
Learn more about markets featured in this article: Greenville, SC.
