Homebuilder Confidence on the Rise

The housing market has certainly experienced dire straits as a result of the global economic recession with staggering foreclosure numbers and banks unwilling to give out home loans. However, the National Association of Home Builders/Wells Fargo Housing Market Index shows that builder confidence for newly built single-family homes has risen three points in July.

According to the index, which rates builder confidence as 17, it is the highest level since September 2008. A different index that gauges how many prospective buyers there are has risen one point, while the index that determines sales expectations over the next six months has not changed in the month of July.

However, we should not celebrate just yet, as these indexes show that confidence in the market is still extremely low, with any number below 50 signaling a weak market. Although the numbers are not as bad as they were in January, when homebuilder confidence dropped to a rating of 8, there is still plenty of recovery that needs to occur.

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