WASHINGTON (6/16/15)--Homebuilder sentiment improved significantly in June, according to the National Association of Home Builders’ (NAHB) monthly housing market index, which rose five points to a nine-month high of 59 (Economy.com June 15).
The surge, which follows a two-point drop in May, was driven by the present single-family home sales index, posting a seven-point jump to 65.
However, all subcomponents improved during the month.
“Builders are reporting more serious and committed buyers at their job sites and this is reflected in recent government data showing that new-home sales and single-family construction are gaining momentum,” said Tom Woods, NAHB chair.
Views on home sales over the next six months also improved, with that subcomponent climbing to 69 from 63. The traffic of potential buyers subcomponent increased by five points as well, to 44.
The overall index also climbed in all regions in June, with the Midwest posting the largest uptick with an eight-point improvement, followed by West and Northeast posting five-point increases, and the South recording a four-point jump.
“As more customers enter the marketplace, construction and new-home sales will continue to rise,” said John Weis, Moody’s analyst (Economy.com). “The inventory-to-sales ratio for new homes is below six months, indicating that homebuilding must pick up soon to keep pace with housing demand.”