The NAHB housing market index (HMI), a gauge for homebuilder confidence, surged to 53 in July.
This beat expectations for a rise to 50, and is up from 49 in June.
This is also the first time the index climbed above 50 since January.
Moreover all three components of the HMI climbed as well.
- The index gauging current sales conditions climbed four points to 57.
- The index for expectations for future sales was up six points to 64.
- The index for traffic of prospective buyers climbed three points to 39.
“An improving job market goes hand-in-hand with a rise in builder confidence,” NAHB Chief Economist David Crowe said in a press release.”As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home.”
Homebuilder confidence took a hit early this year on the back of a severe winter. But improving weather and pent-up demand has helped boost homebuilder confidence.
A reading over 50 shows that more builders view conditions as good than poor.