Real Estate Update: Builder Confidence Hits Yearly High In June
By Bobby Freeman, Realtor // June 26, 2015
brevard real estate market watch
BREVARD COUNTY, FLORIDA – Builder confidence in the market for newly built, single-family homes in June rose five points to a level of 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released earlier this month, it’s the highest reading since September 2014.
“Builders are reporting more serious and committed buyers at their job sites and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum,” says NAHB Chairman Tom Woods.
“Adams Homes has continued to see strong gains as the second quarter comes to a close. After several years of nearly flat mortgage interest rates, the recent spike has reminded buyers how quickly their purchasing power can be diminished” according to Elizabeth Porter, East Coast Regional Manager for Adams Homes.
“Material increases plus higher lot prices have forced home prices up at a rapid rate over the past year but homebuyers have found, in most cases, new homes are the better buy due to extreme energy efficiency savings, speed and ease of closing and of course not having the need for home repairs and remodels.
We are anticipating continued improvements over the next six months due to the overall health of the economy as well as pent up demand from boomerang buyers now eligible for financing again after settling foreclosures during the downturn” says Porter.
“The HMI indices measuring current and future sales expectations are at their highest levels since the last quarter of 2005, indicating a growing optimism among builders that housing will continue to strengthen in the months ahead,” explains NAHB Chief Economist David Crowe.
“At the same time, builders remain sensitive to consumers’ ability to buy a new home.”
All three HMI components posted healthy gains in June.
The component gauging current sales conditions jumped seven points to 65; the index charting sales expectations in the next six months increased six points to 69; and the component measuring buyer traffic rose five points to 44.
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