Builder confidence, residential construction surge as summer winds down
Posted on Tuesday, August 19, 2014 at 9:17:20 AM
The weak housing market of a few years ago was characterized by several things, including declining confidence from homebuilders and a lack of new homes hitting the market. This, in turn, affected residential financing, homebuyers and sellers alike. However, conditions have changed, and now these elements - and the overall housing market - are improving.
According to the U.S. Department of Housing and Urban Development and the U.S. Department of Commerce, building permits increased 8.1 percent from June to July, while housing starts ticked up 15.7 percent during that time. There were also 3.7 percent more homes completed during this past month than in June.
In addition, the National Association of Home Builders reported that builder confidence is also climbing, with more professionals viewing conditions as good, instead of poor.
"As the employment picture brightens, builders are seeing a noticeable increase in the number of serious buyers entering the market," said NAHB chairman Kevin Kelly. "However, builders still face a number of challenges, including tight credit conditions for borrowers and shortages of finished lots and labor."
Overall, these trends could mean that more positive conditions are on the horizon for buyers and sellers.