US homebuilder confidence soars to seven-year high
Confidence in the housing market surged in June, as the Housing Market Index climbed to 52 — the highest level seen since early 2006.
The housing market index reached a seven-year high in June, rising from 2006 levels to 52. Homebuilder confidence grew as home sales increased, buyers flooded the market, and monthly supplies balanced out more.
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Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI) showing that assessments of housing activity improved notably in June with the composite HMI index climbing to 52, the highest level seen since early 2006, while the "buyer traffic" index also improved, rising to a level of 40.
It's important to note that June firmly reversed the weakening trend seen earlier in the year, suggesting that activity in the new home market has picked up notably and is remaining strong even beyond the traditionally strong first quarter period.
Looking at the data, it is fairly clear that the last year of results indicate a major change in builder sentiment likely coming as a result of improvements in confidence given the notable rise in buyer traffic, reduced inventory and a more balanced monthly supply.