Index Of US Homebuilder Confidence Improves; Sales Of New Homes Seen Strengthening
8/15/2012
Columbus Republic/Associated Press
U.S. homebuilders grew more confident in the housing recovery in August, as many reported that prospects for sales are the best they've been since the home bubble burst five years ago. The National Association of Home Builders/Wells Fargo builder sentiment index released Wednesday rose two points this month to 37, up from 35 in July. That's the highest reading since March 2007. The index, which is based on responses from 478 builders, has been trending higher since October and only dipped once since January - suggesting a turnaround in housing is solidifying after years of stagnation. Any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached that level since April 2006, the peak of the housing boom. As confidence has increased, so has construction. Builders broke ground in June on the most new homes and apartments in nearly four years. And permits to build single-family homes rose to the highest level since March 2010. Many economists believe that housing construction could contribute to overall economic growth this year for the first time since 2005. Link
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