U.S. Homebuilders Feeling More Optimistic About the Housing Market
The Islamorada Model from Nova Homes of South Florida
According to the National Association of Home Builders/Wells Fargo, U.S. homebuilders are feeling more optimistic about the housing market this month, reflecting strong growth in new home sales and prices. Builder sentiment index just released rose two points from 58 in July to 60 this month.
Readings above 50 indicate more builders view sales conditions as good rather than poor. The index has mostly held at 58 this year. Builders’ view of current sales and their outlook for sales over the next six months improved this month. The latest builder survey follows a recent surge in the sales of new U.S. homes. Sales accelerated in June to a seasonally adjusted rate of 592,000, the fastest pace in more than eight years. The median price of a new home increased to 6.1 percent from June, 2015.
New home sales have risen 10.1 percent through the first six months of 2016, aided by a strong job market and low mortgage rates. Employers added the most jobs in eight months in June, and hiring was also healthy in July. Meanwhile, the average for the benchmark 30-year fixed-rate mortgage was 3.45 percent last week, down sharply from 3.94 a year ago. Those trends should keep housing “on an upward path during the rest of the year,” said NAHB’s chief economist, Robert Dietz.
Nova Homes of South Florida is building custom homes in Naples, Golden Gate Estates, and Marco Island, Florida. Homes are priced from the high 180s to over $1 Million. For more information call 239.307.6116, or visit www.novahomesbuilder.com.