U.S. Homebuilder Confidence Soars to 7-year high

After seven long years of falling victim to the U.S. housing market collapse, most homebuilders are finally optimistic again when it comes to new home sales. This recent optimism may help to drive stronger economonic growth in the coming months. More people are encouraged to buy homes thanks to steady hiring and low mortgage rates, which has subsequently increased demand and raised the average price of homes. This has made builders more optimistic about the new home market, ultimately leading to more housing constuction and jobs. Although local builders have not returned to work levels before the market collapsed, indicators show that new-home construction will continue to spike upward.

More from the article:

Nat Hodgson, executive director of the Southern Nevada Home Builders Association, said the market’s mini boom has its roots in April 2012. That’s when building permits doubled amid a supply crunch, as foreclosures stalled and builders ran out of standing inventory... “We’re not jumping up and down and saying this market is the greatest thing since sliced bread, but the fact that we’ve bounced off of our bottom gives us hope,” Hodgson said. “For a number of years, builders were buying dirt, building houses and selling them for less than their costs. As of this minute, they’re able to make a profit.”

Check out the story at the following link:
http://www.reviewjournal.com/business/housing/us-homebuilder-confidence-soars-7-year-high

Source: REVIEWJOURNAL.com