The National Association of Home Builders recently released its latest Housing Market Index, which measures builder confidence in the new housing market based on a survey the association has honed over the past 30 years. The August report showed an increase of one point from July's reading to hit 61. This indicates homebuilders' confidence reached a level not seen since November 2006, well before the recession.
"Homebuilders' confidence has reached a level not seen since November 2006."
"Today's report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015," NAHB Chief Economist David Crowe said. "Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year."
Hurdles to overcome
Despite the steady and healthy gains of the housing market, there are still some obstacles in the road that are creating minor setbacks for the industry. NAHB Chairman Tom Woods, a home builder from Blue Spring, Missouri, highlighted some of the biggest hurdles.
"Single-family housing is making slow but steady progress," Woods said. "However, we continue to hear that builders face difficulties accessing land and labor."
As the job market improves, and with unemployment rate hitting 5.3 percent, according to the U.S. Department of Labor, many workers who left the housing market during the height of the recession have left the industry and found jobs elsewhere. Many of these individuals are not returning to the housing sector, leaving a gap when homebuilders need them the most.
Despite these obstacles, with homebuilders' confidence levels nearing a decade high, all signs seem to indicate the housing recovery will continue ahead and nowhere is property development hotter than Texas. According to a recent Wallethub survey of 300 metropolitan regions, Texas dominates the Healthiest Housing Markets, with seven of the top 15 cities. As more individuals and families buy land for sale in Texas, homebuilders can continue to rely on this segment to boost home sales.
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Homebuilders are confident in the future of the housing market.