Abq. builders hoping to see jump in Q4 starts
U.S. homebuilders’ confidence in the market for new, single-family homes surged this month to the highest level in nearly nine years.
The brighter outlook reflects growing optimism that sales will increase over the next six months. That could potentially spur growth in the home construction, a key driver of the economy.
The National Association of Home Builders/ Wells Fargo builder sentiment index released Wednesday rose, this month to 59, up four points from August. The index has risen four months in a row.
The latest reading is the highest since reaching 61 in November 2005, before the housing bubble burst.
In the Albuquerque metro area “builder confidence remains strong but still lagging compared to some of our peer western cities (Phoenix and El Paso),” said John Garcia, executive vice president of HBA, the area’s homebuilders group.
“Job growth and attracting active adults are important factors that affect both builders’ confidence and consumer confidence,” Garcia told the Journal. “We are expecting more new home permits by the close of the fourth quarter than we had last year.”
The optimism comes despite a slowdown in U.S. new home sales.
Original Article By: Journal and Wire