Homebuilder confidence levels rise in Sacramento
The economy in Sacramento has been posting significant gains in recent months. This improvement is partially the result of returning strength to the local housing market in the California city. Real estate in Sacramento is being sold for increased prices and at higher volumes. As a result, workers and experts in the residential construction industry are gaining a more positive outlook.
The Sacramento Business Journal reports that home builders are predicting industry growth for the upcoming year. According to the North State Building Industry Association forecast, the regional economy is improving and home builders are, for the first time in over five years, laying the ground work for industry growth.
Some experts are cautiously optimistic in the face of the good news.
"The worst is behind us, but it is not strong enough to celebrate," Sanjay Varshney, dean of the College of Business Administration at California State University Sacramento told the news source. "The regional economy bottomed out in 2011 ... but it's two steps forward, one step back."
According to the National Association of Home Builders, the Home Builders/Wells Fargo Housing Market Index for builder confidence rose for the sixth consecutive month in October 2012. United Press International reports that confidence levels rose to a score of 41 - the highest level achieved since June 2006.
"The slight gain in builder confidence this month is an indication that, while still moving forward, the speed at which the housing recovery is proceeding is being moderated by the various constraints such as tight credit, difficult appraisals and more recently, the limited inventory of buildable lots in certain markets," said NAHB Chief Economist David Crowe.
As builder confidence levels continue to rise, more residential construction projects may be approved in the near future. Plenty of potential homebuyers will only consider new construction projects when shopping for a home. New homes offer shiny surfaces, new paint and a clean slate for people who are attracted to the idea of moving into a home that does not require any great renovation projects.
Homebuilder confidence is not the only thing that has risen - consumer confidence levels are also up. The Sacramento Business Journal reports that many Americans are feeling positive toward the economic recovery occurring in metros across the nation, which is encouraging potential homebuyers to check out local MLS listings.