|Photo courtesy of online.wsj.com|
For the past few years, Americans have kept a close eye on the housing market. With a struggling economy, there hasn’t been much about which to get excited, until now.
Since we specialize, in part, in PR for architects, home builders, construction and design-build companies, and related industry product manufacturers, we wanted to share how a trifecta of positive developments has created a surge in confidence for U.S. home builders and various others in the field.
The National Association of Home Builders/Wells Fargo recently released its June index of builder sentiment, showing homebuilders’ confidence has reached the highest level in seven years, according to an article on Bloomberg.com. Reports also showed builder sentiment rose by 8 points to 52, the biggest monthly increase since September 2002.
The confidence survey asked U.S. homebuilders to characterize sales as good, fair or poor, gauge prospective buyers’ traffic, and assess the six-month outlook. All three components of the survey climbed to the highest levels since March 2006.
So what has caused homebuilders’ surge in confidence? Builders including PulteGroup Inc. and Lennar Corp. credit it to a trifecta of low mortgage rates, a strengthening job market and limited inventories. Bloomberg.com even reports the positive forecast is creating optimism among manufacturers. Texas-based Lennox International Inc. (LII), a maker of furnaces and air conditioners, is one company to benefit from the recovering market. Joseph Reitmeier, chief financial officer of LII, was even confident enough to tell Bloomberg.com it’s a good thing to be tied closely to the housing market.
“Over the last few years, it’s been tough to say that being in a business or an industry that tied closely to housing is a good thing,” Reitmeier said. “We can actually say that now.”
Fans and friends, if your job relates to the housing market and building industry, we want to know what you think. Have you seen an improvement in business growth? And, what do you think are other contributing factors to the increase in builders and manufacturers’ confidence? Provide feedback in our comments section below.
To read the entire article on Bloomberg.com and review the results of the home builder’s confidence survey, click here.