A recent report from the National Association of Home Builders (NAHB) shows that displays home builder confidence at its highest level since November 2005.
According to the survey, builder confidence for new, single family homes in August rose one point over the previous month to 61. Single family builder confidence is one of the key components of the NAHB Wells Fargo Housing Market Index (HMI).
On the index, a score of 50 or higher signifies confidence and growth while scores below 50 mean a lack of confidence and contraction.
"The fact the builder confidence has been in the low 60s for three straight months shows that single-family housing is making slow but steady progress," said NAHB Chairman Tom Woods in a statement.
Two of the other three ratings on the HMI showed scores above 60. Current sales conditions came in at 66, an increase of one point over last month, while sales expectations over the next six months showed no change at 70.
The last index on the HMI, which measures buyer traffic, rose two points, but still came in below 50, at 45.
Despite the poor buyer traffic score, NAHB chief economist David Crowe is not worried about the market's future.
"Today's report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015," Crowe said in a statement. "Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year."
Three month averages of HMI scores for each of four regions showed increases or no changes. Rising three points apiece were the West and Midwest, moving to scores of 63 and 58, respectively. A two point gain brought the South in a tie with the West at 63. The only sub-50 region, the Northeast, remained at 46 after showing no change.
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