US homebuilders: Another summer pop! – BCA Research
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
BANKING

US homebuilders: Another summer pop! – BCA Research

US homebuilders are starting to look downright giddy, according to BCA Research. The National Association of Homebuilders survey of builder confidence popped to its highest level since January, 2006.



According to the survey: “Builders are seeing more motivated buyers coming through their doors as the inventory of existing homes for sale continues to tighten."


Indeed, the household formation rate has returned to its historical average, after being severely depressed during the Great Recession. Foreclosures have significantly subsided, which removes a significant headwind. Importantly, the recent rise in mortgage rates has so far not been problematic for builders – all four regions reported increased activity. Bottom line: residential construction will continue to make a solid contribution to GDP in 2013.

This post was originally published by the BCA Research blog.

Gift this article