House construction sector shows improvement as buildersÂ’ report sales prospects best in 5 years reports EdaConstructions.com.au

(EstateNewsWire.com, August 24, 2012 ) San Francisco, CA -- The housing industry in the United States of America finally showed some spark recently. The National Association of Home Builders/Wells Fargo builder sentiment index gained two more points this month and touched 37 points, which was 35 in the previous month (July).

This has been the highest reading recorded after March 2007. This recovery in the housing sector has boosted the confidence of U.S home builders who have been facing years of stagnation after the home buying and building bubble exploded five years back.

National Association of Home Builders/Wells Fargo builder sentiment index is based on the responses of 478 builders, who had posted a positive trend since last October and showed downward trend just once, earlier this year in January. This confirms to an extent that the U.S. housing industry is solidifying and may suggest a turnaround.

This positive trend was mainly aided by low rates of mortgage, a decline in unsold homes inventory, and a sharp reduction in the pace of foreclosures during previous year as the banks hold back the foreclosed properties.

As a result, builders grew in confidence and started construction projects, most of which are new apartments and homes, back in June after a four-year long gap. This confidence of builders can also be judged from the fact that permits to construct single-family homes have also reached the highest level since March 2010.

Now, several builders are expecting a positive outlook on the sales in the upcoming six months and Marcie DePlaza is one of them, as this group is also anticipating that sales will continue to grow strong, if the interest rates and inventory of unsold homes remain low.

DePlaza, who is an division president of Florida-based GL Homes, said in USA Today,

"A lot of people sat on the fence the past several years and now they're ready to make a move. People are feeling like the bottom has hit."

However, in spite of all the above mentioned positive records of sales there are still a few builders who are still doubtful that a recovery of the U.S housing industry is well on the way because sales in some communities are still uneven.

Sivage Homes CEO Michael Sivage said in USA Today,

"I would not go so far as to say I absolutely believe a housing recovery is under way. I'm not convinced that it's sustainable quite yet."

Despite the uncertainty of the situation, the hiring ratio has also shown a positive trend, as various employers have added 163,000 jobs since February, which is a great deal.

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