After all the negative news and challenging forecasts reported about the housing industry in the last few years, overall, homebuilders believe that the housing recovery is real and are keeping a watchful and hopeful eye on the industry.
June in particular was a good month for the National Association of Home Builders with the index reaching 52, the highest it’s been in seven years. In fact, any reading above 50 indicates a profitable sales period ahead, making this an impressive fete so far. Many experts in the industry report that the good news of the recovery has been felt in the air for the past six months, and Chief Economist for the trade group, David Crowe, says that it promises to get even better. Since the month of June is usually a much slower month for the housing industry, seeing so much promise of upcoming sales is extremely encouraging news.
With sales conditions improving particularly after the month of May, which is normally the spring peak, those who were naysayers a year ago have now changed their tune. Ironically though, since the signs of the housing recovery have begun, there appears to be a shortage of workers because the home builder’s industry is struggling to find labor. Though the number of foreclosures is decreasing and housing prices are rising still, even the rise in mortgage rates hasn’t affected the recent surge in the industry. On that note, the industry definitely has its concerns about a lack of workers they trust that laborers will find their way into the industry.
In speaking about what has held many potential buyers from purchasing homes in the recent years, David Crowe says, in his opinion, that it has not been housing costs or mortgage rates, but the ability of most potential buyers to qualify for credit. In spite of the credit challenges that many buyers face, economists still forecast continued improvement for the home building industry as a whole.
Experts like David Crowe, see all the positivity of latest reports as simply confirmation of the rise in the industry that everyone has been feeling since the beginning of this year.
(Source: CNN Money)