Home builders’ morale in the US stretches to five-year high

Julian Harris
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THE OUTLOOK for America’s housing market received a boost yesterday as confidence among US builders climbed to a fresh five-year high.

A widely-regarded survey conducted by the National Association of Home Builders (NAHB) and Wells Fargo edged up to an index score of 29 for June. May’s score was revised downwards, but still showed an increase of four points.

The headline number was the highest recorded since May 2007.

The uptick reflects the “continued, gradual improvement we are seeing in many individual housing markets as more buyers decide to take advantage of today’s low prices and interest rates,” NAHB chairman Barry Turnberg said.

The part of the survey that measures current sales conditions touched its highest point since April 2007. The sub-indices that record sales expectations in the next six months and the traffic levels of prospective buyers held steady in the month.

The survey records current sales and prospects for future sales of single-family homes in the US.