17 July 2012 16:35 [Source: ICIS news]
HOUSTON (ICIS)--A key indicator of US home builder confidence reached its highest point in over five years, the National Association of Home Builders (NAHB) said on Tuesday.
The NAHB/Wells Fargo Housing Market Index (HMI) for July showed builder confidence in the market for newly built, single-family homes rose six points to 35, the largest one-month gain since March 2007.
Regardless, the US housing market is still in a “fragile stage of recovery,” NAHB chief economist David Crowe said.
However, he added that the July gain in HMI along with positive gains in other housing indicators are helping lead the US economy out of recession.
“This is particularly encouraging at a time when other parts of the economy have begun to show softness, and is all the more reason that the challenges constraining housing's recovery - namely overly tight lending conditions, poor appraisals and the flow of distressed properties onto the market - need to be resolved,” Crowe said.
Every component in the HMI increased in July, as did the score of every region in the country.
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