A strong job market and historically low mortgage rates will probably keep boosting demand for residential real estate, ensuring home building will contribute to economic growth.
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“Today’s report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015”, said NAHB Chief Economist David Crowe, in a news relase.
The index stood at 60 in July and June.
Sentiment in the market for newly built, single-family homes rose one point in August to 61, the best showing since November 2005, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index showed on Monday. “However, we continue to hear that builders face difficulties accessing land and labor”. Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
The July existing-home sales figure will be released August 20, and new-home sales data will be released August 25.
Through this year’s first six months, the government said that purchases of new home were up 21.2% to more than 274,000.
Two of the three index components posted gains for the month. Components measuring current and future home sales also rose to or remained at new heights not seen since late 2005.
The view by builders of the current conditions for sales and the traffic of buyers improved this month, while sales prospects during the six months remained stable.
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Three of the four regions posted gains in their three-month moving averages.
