Homebuilder Confidence Grows Nationwide

Posted on 07/17/12 No Comments

So far, so good.

At the beginning of 2012, most of the real estate industry was in agreement that 2012 would see gradual, moderate growth. As predicted, home builders are reporting plenty of positivity across the country. According to the Associated Press, “The National Association of Home Builders/Wells Fargo builder sentiment index surged six points this month to 35, the highest reading since March 2007, the trade association said Tuesday.”

This is significant because of the timeframes involved. Almost every real estate market metric superlative in the last two years has used “since 2009/10” as its benchmark because that’s when the federal government enlisted a tax credit to incentivize home buyers. With homebuilder confidence as high as its been since 2007–the culmination of the real estate bubble–we should characterize signs of growth as long-term trends, not pan-flashes.

The AP piece also makes note of new home sales trends, also at a five-year high, and mentions that “Many economists believe that housing construction could contribute to overall economic growth this year for the first time since 2005.”

So does this mean the market as a whole, not just Raleigh, Cary and Durham, has started its way up from the bottom? Could be.

At least this time, we’re not brushing off the numbers.

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