{"id":24539,"date":"2023-06-19T10:34:48","date_gmt":"2023-06-19T14:34:48","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/home-builders-turn-bullish-for-the-first-time-in-nearly-a-year-amid-strong-housing-demand\/"},"modified":"2023-06-19T10:34:50","modified_gmt":"2023-06-19T14:34:50","slug":"home-builders-turn-bullish-for-the-first-time-in-nearly-a-year-amid-strong-housing-demand","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=24539","title":{"rendered":"Home builders turn bullish for the first time in nearly a year amid strong housing demand"},"content":{"rendered":"
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The numbers:<\/strong> For the first time in nearly a year, home builders are upbeat about the housing market outlook.<\/p>\n

The shortage of previously-owned sales is helping to buoy builders\u2019 confidence.\u00a0<\/p>\n

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With mortgage rates above 6%, many homeowners find little incentive to sell\u2014nearly 92% have an outstanding mortgage with a rate below 6%, according to a recent survey conducted by Redfin
\n RDFN,
\n -0.37%<\/bg-quote>,<\/span>
\n a brokerage and real estate listings company. And 23.5% of homeowners have a mortgage rate of less than 3%. Consequently, the number of new home listings has dropped by 22%, as compared with the same period a year ago, according to a Realtor.com housing trends report.<\/p>\n

In turn, home builders are feeling good about their business. The National Association of Home Builders\u2019 (NAHB) monthly confidence index rose 5 points to 55 in June, the trade group said Monday.<\/p>\n

This is the sixth month in a row that sentiment has improved among builders. It is also the first time in 11 months that builder confidence has moved into positive territory of above 50.<\/p>\n

The June reading of 55 was the strongest since July 2022. A year ago, the index stood at 67.<\/p>\n

Key details: <\/strong>Builders were starting to pull back on sales incentives. The share of builders cutting prices to boost sales has dropped to 25% in June, from a peak of 36% in November 2022.<\/p>\n

The typical builder was cutting prices by 7% in June, the NAHB said.<\/p>\n

The three gauges that underpin the overall builder-confidence index were up.<\/p>\n