House Construction Industry Continues to Improve
House construction continues to see hope for its future as the index rose by two points just this month. According to data from the National Association of Home Builders and the Wells Fargo Housing market Index, the confidence in home builders has reached its highest point since September 2008. This is a second improvement of the house construction industry that happened in two consecutive months.
According to Joe Robson, Chairman of the NAHB, home builders are now responding to this and saying that this is a good time for the industry as a whole. Home mortgage rates are very favorable for those who want to buy their first house, and it fares well for the construction industry as well. Factors that contribute to this favorable market condition are the affordable house prices, a wide choice of house units and a credit of $8,000 for first time home buyers.
According to David Crowe, NAHB’s chief economist, this increase signals the improvement of the construction industry that is expected to go on in the future. Crowe further adds that the announcements of the Department of Housing and Urban Development to give $8,000 tax credit for new home buyers is encouraging to home buyers.
The NAHB has been gathering data for more than 20 years now. According to the builder index, sales and predictions can be made for the coming six months and are evaluated as good, fair or poor. Home builders are also asked to rate the sales activities as high average or low. The scores are then integrated and calculated for results. A number that is over 50 means that the industry generally sees the market as “good”.
In the last survey, house construction players saw more positivity in the market as two of three components in the HMI rose in May. The index that measures current sales rose by two points to 14. ON the other hand, the index that measures sales expectations in the next six months increased by 3 points to 27. Lastly, the index that measures the traffic for prospective buyers stayed at 13.
The house construction industry continues to improve as they see improvements in the economy as a whole. More Americans are now getting more confident to spend their money and invest them in properties.