U.S. Homebuilders: Another Summer Pop!

U.S.  homebuilders are starting to look downright giddy. The National Association of Homebuilders survey of builder confidence popped to its highest level since January, 2006.

U.S.-Homebuilders-Another-Summer-Pop1

According to the survey, “Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten”.  Indeed, the household formation rate has returned to its historical average, after being severely depressed during the Great Recession. Foreclosures have significantly subsided, which is removes a significant headwind. Importantly, the recent rise in mortgage rates has so far not been problematic for builders – all four regions reported increased activity.

The bottom line

Residential construction will continue to make a solid contribution to GDP in 2013.

Article courtesy of http://bcaresearch.com

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>