Confidence of homebuilders jumps as recovery deepens

Confidence among U.S. homebuilders surged in June, staging its biggest gain since 2002 in one of the strongest signs yet that the housing recovery is gaining traction.

A majority of homebuilders say conditions for new construction are favorable, rather than poor, for the first time since the housing crisis began seven years ago, according to a closely watched index released on Monday.

Executives in the homebuilding industry say a steady rise in home prices, tighter inventories of properties up for sale and a slowing trend in foreclosures have helped the housing market regain its stride over the past year.

Even so, the big jump in confidence registered this month by the National Association of Home Builders/Wells Fargo Housing Market index was surprisingly robust.

Pete Flint, chief executive of online real-estate company Trulia, said conditions were just right for confidence to blossom, with supply of available homes still trailing a rising tide of buying sentiment.
"We are in the early days of a real estate market recovery," he said. "The supply of homes for sale is still relatively small because sellers are reluctant to list in a rising market. They want to sell at the top." (more)

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