Monday, July 20, 2009

Housing Market Index at Highest Level in Nearly a Year

The National Association of Home Builders (NAHB) announced that its July housing market index climbed to the highest level it has been in nearly a year, as improved sales conditions boosted confidence in the market for new single-family homes. The index rose to 17 points, two points above last month's index and the highest it has been since September 2008.

"Builders are seeing slightly better sales conditions this month as consumers takes advantage of the first-time buyer tax credit, low interest rates and attractive home prices." said NAHB chairman Joe Robinson.

A rise in the home builder index is a positive sign for the U.S. housing market, which has been showing continued signs of stabilization with home sales rising and price declines moderating throughout the country. Low interest rates and other incentives have helped builders attract home buyers while the government's $8,000 first-time home buyer tax credit has facilitated a boost in sales.

On a regional basis, the Southern region of the U.S., which includes Florida, posted the most positive change with a five-point increase in their housing market index. Both the Midwest and West regions were unchanged during the month of July while the Northeast posted a three-point decline.

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