Wednesday, January 28th0.3°C
24779
24105

Confidence among US homebuilders climbs to highest level since January; sales outlook improves

U.S. homebuilders are feeling more confident in their sales prospects headed into next year, a sign that home construction and sales of newly built homes may pick up after stalling this summer.

The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose this month to 55, up two points from a revised reading of 53 in July.

The latest reading is the third monthly increase in a row and the highest since January, when it was 56. Readings above 50 indicate more builders view sales conditions as good, rather than poor.

Builders' view of current sales conditions for single-family homes, their outlook for sales over the next six months and traffic by prospective buyers each increased since July.

The brighter outlook bodes is a positive sign for the new-home market after a lacklustre summer.

Sales of new homes are running behind last year's pace. They slid 8.1 per cent in June to a seasonally adjusted annual rate of 406,000.

A mix of rising home prices, higher mortgage rates and meagre wage growth has made it more difficult for would-be homebuyers to purchase a newly built home, particularly first-time buyers.

At the same time, the U.S. economy has been adding jobs at a solid clip, with gains topping 200,000 jobs every month in the six months through July.

And the pickup in home values has spurred homeowners to trade up to a nicer home. These so-called move-up buyers are generally in a better financial position to buy than first-time buyers and have helped drive sales for some of the nation's biggest homebuilders.

In the latest NAHB index, which was based on responses from 366 builders, builder confidence improved nationally and on a regional basis, with readings for the Midwest, West, Northeast and South all posting gains from last month.

The index gauging current sales conditions for single-family homes rose two points to 58, while builders' outlook for sales over the next six months also rose two points, climbing to 65. A measure of traffic by prospective buyers increased three points to 42.

Housing, while still a long way from the boom of several years ago, has been recovering over the past two years.

Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB data.

The builder confidence survey sent shares in U.S. homebuilders higher in morning trading Monday. TRI Pointe Homes Inc. led the sector. The stock rose 52 cents, or 3.8 per cent, to $14.26.

The Canadian Press


Read more Business News

24910


Recent Trending




Today's Market
S&P TSX14602.88-231.00
S&P CDNX667.30-9.49
DJIA17191.37-195.84
Nasdaq4637.994-43.503
S&P 5002002.16-27.39
CDN Dollar0.7980+0.0001
Gold1286.60-5.10
Oil46.30-0.06
Lumber318.40+2.90
Natural Gas2.87-0.111

 
Okanagan Companies
Pacific Safety0.120.00
Knighthawk0.010.00
QHR Technologies Inc1.47+0.04
Cantex0.0350.00
Anavex Life Sciences0.182+0.002
Metalex Ventures0.035-0.005
Russel Metals23.70-0.63
Copper Mountain Mining1.00-0.05
Colorado Resources0.145-0.01
ReliaBrand Inc0.01+0.0031
Sunrise Resources Ltd0.03-0.025
Mission Ready Services0.21-0.03

 



24153

FEATURED Property
1953599#53 3381 Village Green Way
3 bedrooms 1 baths
$74,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Service fit makes happy employees

Finding the right employees for the front lines of your company is key to developing a great service attitude within your company. It is just as important as hiring the right accountant, manager, sale...


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...

_








Member of BC Press Council


24975