Confidence among
to its highest level in six years and many expect the housing recovery will
strengthen in the next six months.
The National Association of Home Builders/Wells Fargo
builder sentiment index released Tuesday increased to 40 in September. That’s
up from 37 in August and the highest reading since June 2006, just before the
housing bubble burst.
Any reading below 50 indicates negative sentiment about the
housing market. The index hasn’t reached that level since April 2006, the peak
of the housing boom.
Builders also reported seeing the best sales level since
July 2006, while turnout by prospective buyers returned to levels not seen
since May 2006.
The survey, which is based on responses from 445 builders,
has been trending higher since October. After a dismal 2011, homebuilders have
seen their fortunes begin to turn around this year as the housing market
recovery has steadily gained momentum.
Sales of newly built homes are running ahead of last year,
when they sank to the lowest level in a half-century. Sales of previously
occupied homes also are up from a year ago. And home prices are increasing more
consistently, in part because the supply of homes has shrunk and foreclosures
have eased.
