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The NAHB housing market index climbed to 37 in August, rising to the highest level since February 2007.The index climbed for the fourth straight month.
“This fourth consecutive increase in builder confidence provides further evidence of the gradual strengthening that’s occurring in many housing markets and providing a needed boost to local economies,” said NAHB Chief Economist David Crowe.
“However, we are still at a very fragile stage of this process and builders continue to express frustration regarding the inventory of distressed properties, inaccurate appraisal values, and the difficulty of accessing credit for both building and buying homes.”
Expectations: Economists polled by Bloomberg forecast the NAHB housing market index to hold steady at 35.
The National Association of Home Builders’ housing market index is a sentiment index in which respondents rate not just the housing market but also the economy in general. The index draws on builder perceptions of current single-family home sales and sales expectations for the next six months. It also includes builders’ expectations of traffic of prospective buyers.
The index jumped six points in July, its largest monthly jump in nearly 10 years and the reading is currently at its highest since March 2007.