Homebuilders’ confidence increases during July

Confidence among the nation's homebuilders is up thus far in July.The National Association of Home Builders recently showed an increased level of confidence in the country's builders thus far in July.Overall, the NAHB index climbed to 15, which is higher than many economists had forecast. When asked by Bloomberg about this month's confidence level, the median level relayed by economists was 14. The index level jumped 2 points from June.”It's still at a very low level,” Michelle Meyer, a senior economist at Bank of America Merrill Lynch in New York, told Bloomberg, regarding the homebuilders' measure. “In order to see a brighter future for housing, we need to see a stronger economy.”The high level of discounted and distressed properties has remained a tough measure for builders' to battle. This backlog creates problems, as more homebuyers are inclined to purchase cheaper properties than invest in new homes. Furthermore, the continued rise in unemployment has made it tougher for many prospective homebuyers to consider buying a new home over a discounted property.Despite these trends, the greater confidence and increase residential construction numbers recently released by the U.S. Census Bureau and Department of Housing and Urban Development show a positive trend. In regions with improving job markets, such as Houston, property sales could improve steadily during the next several years.Courtesy of 2M Realty News

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