Confidence among companies who build homes in the US rebounded this month, after falling in October.
The National Association of Home Builders released their latest Housing Market Index this week. The index determines housing trends and demand in the property segment after polling builders on single-family home sales, single-family home sales expectations and demand from potential buyers. November’s index improved by four points over October.
“Low interest rates, affordable home prices and solid job creation are contributing to a steady housing recovery. After a slow start to the year, the HMI has remained above the 50-point benchmark for five consecutive months, and we expect the momentum to continue into 2015,” David Crowe, chief economist at NAHB said in the report.
The report said the findings were positive as the US property market enters winter, when sales typically drop especially in states that get snow. However properties listed in November and December tended to sell quicker as buyers were more serious.
The US housing market’s recovery hit a bump in October, with many US metro centre reporting subdued sales figures. However in a separate report, the First American Leading Markets Index the NAHB reported in 59 of the 350 metro areas in the country have exceeded or returned to normal levels recorded before the crash of 2007-2008, which would indicate the recovery is back on track.
“The markets are recovering at a slow, gradual pace. Continued job creation, economic growth and increasing consumer confidence should help spur pent-up demand for housing,” Kevin Kelly, chairman of the NAHB.