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The National Association of Home Builders (NAHB) recorded a sharp rise in homebuilder confidence in June with the latest reading of its Housing Market Index (HMI).
Builder confidence rose five points in June from the previous month, from 54 to 59, according to the HMI, a monthly survey of NAHB members “designed to take the pulse of the single-family housing market.”
The scale runs from 0 to 100 and gauges builder perceptions of current single-family home sales and sales expectations for the next six months. The survey also asks builders to rate volume of traffic of prospective buyers.
All three components that make up the overall HMI posted gains in June. The component gauging current sales conditions jumped seven points to 65, the index charting sales expectations in the next six months increased six points to 69, and the component measuring buyer traffic rose five points to 44.
June reading of 59 marks the highest point the index has reached since September 2014 and experts expect it to continue to rise.
“Builders are reporting more serious and committed buyers at their job sites and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum,” said NAHB Chairman Tom Woods, a homebuilder from Blue Springs, Mo.
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