Home Builder Sentiment

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Home Builder Sentiment – The sentiment of home builder’s rose during the month of July according to the National Association of Home builders. Monday they released a statement making the announcement.

Before you get too excited, the home builder sentiment is still towards historic lows and not showing any sign of really pulling out of it all the way any time soon. The NAHB/Wells Fargo Housing Marketing index is up to 15 this month after being at a nine month low of 13 last month.

Home Builder Sentiment

Home Builder Sentiment

The thought was the index would rise to 14, but everyone was pleasantly surprised when they noticed it was at 15. This is a positive

U.S. home builder sentiment rose more than expected in July but remained near historic lows, the National Association of Home Builders said on Monday.

“The improvement in builder confidence in July is a positive sign that the outlook perhaps isn’t quite as bleak as was feared in June,” said Bob Nielsen, chairman of the NAHB, in a statement.

One of the major issues for builders is their competition with foreclosure properties. They are cheap and plentiful on the market. However, there are areas of the country where people are looking to take advantage of good buying conditions and looking to purchase new homes.

Personally, I can speak on this because I was just in Southern Illinois, St. Louis area this past week. Speaking to a plumber in the area doing some work for builders, he mentioned there was an unusual amount of building happening in the area considering the market conditions.

He said the builders were pushing on with the plans to build and expand more and more. This must have been one of those pockets where people still want new homes opposed to foreclosed ones.

All of this may sound like good news, but the NAHB Chief Economist David Crowe still isn’t all that optimistic about the near future. He said, ”Basically, the market continues to bounce along the bottom, with conditions in some locations beginning to improve.” - Home Builder Sentiment