New U.S. housing market figures show that sentiment among home builders is the best it has been since April 2006, with home builders who perceive encouraging sales conditions outnumbering those who see a poor housing market.
The National Association of Home Builders (NAHB) market index hit a “significant milestone” in June, reaching 52, according to a press release on Monday.
“This is the first time the HMI [index] has been above 50 since April 2006, and surpassing this important benchmark reflects the fact that builders are seeing better market conditions as demand for new homes increases,” said NAHB Chairman Rick Judson, a home builder and developer, in a statement.
The eight-point increase is the biggest gain in a single month since August and September 2002.
The data covers only newly built single-family homes. NAHB Chief Economist David Crowe also predicted a 29 percent increase this year in housing starts, the number of homes where construction has started, which if true would mark the first time since 2007 that starts have topped 1 million units.