Encinitas Realtors are reporting that homebuilder confidence was at its highest level in five years for the month of August. For Encinitas Realtors, homeowners, and potential homebuyers this is exceptional news.
Measured by the National Association of Home Builders/Wells Fargo, the builder confidence index saw an increase to 37, a number that has not been reached since February of 2007 and exceeding projections for the month, with many economists believing that little to no improvement would be made on the 35 reported in July.
While this number shows a great deal of improvement, a rating of 50 or more denotes that conditions are viewed as positive by the majority of respondents.
What this does mean, however, is that some of the nation’s largest homebuilders, such as PulteGroup, Inc. are benefiting from less-expensive properties allowing them to build more homes, which results in more jobs, and strengthens the economy. PulteGroup saw a 32% jump in orders for the second-quarter.
With homes still comparatively cheap and mortgage rates rising but still near record-low numbers, it is not overreaching to say that real estate around the country, including Encinitas real estate, is improving.