The low housing inventory—mostly sales of existing homes—could be expanded with the addition of new homes.
According to the National Association of Home Builders/Wells Fargo Housing Market Index in its report released Tuesday morning, there is a greater confidence among home builders in every region of the country.
Builders are gaining a positive view of the real estate market, which means new construction and possibly major renovations could be on the horizon in many communities. And as many economic watchers have noted this creates a chain reaction by creating jobs inside the construction industry and in communities as more people find work.
Contractor confidence rose six points to 57 on the Home Market Index and, says the NAHB, that it is the strongest reading since January 2006.
There are “solid gains in current sales conditions, traffic of prospective buyers and sales expectations for the next six months,” NAHB Chairman Rick Judson, said in a press release from the association.
And no doubt this is fueled by last month’s news that sales of newly built, single-family homes rose for a third consecutive month in May, according to data released by federal agencies of Housing and Urban Development and the U.S. Census Bureau.