U.s. Homebuilders Grow Optimistic About Fortunes

U.S. homebuilders grow optimistic about fortunes

U.S. homebuilders expect high sales in coming months in 2010 although there were many speculations over the impact of end of tax credits on the sales of homes. The homebuilders are expecting to see a growth in traffic in coming months .The tax credit policy ended on April 30 which was the deadline to sign a deal for the property and the buying of the properties should be completed on or before June 30.Many who entered into an agreement before April 30 may pay for the properties before June 30.

The National Association of Home Builders informed that the industry confidence rose by three points in the month of May 2010 to 22. The survey was conducted of four-hundred-sixteen residential builders who informed about the rising demands. A reading below 50 points shows negative sentiments and before downturn the reading was above 50 points only in April 2006.

The attractions for home buyers has been the low mortgage rates , the tax credit of $8000 for first-time homebuyers, and a tax credit of $6500 for second time home buyer .These attractions brought buyers to the housing market and the demands for homes increased. Many buyers invested in larger homes or shifted to a preferred location to make use of the tax credit policy.

Currently, home buyers have a range of choice in property investments and there are numerous other benefits offered by homebuilders to the buyers. Homes sales increased by three points to 23 and foot traffic index rose by three points to 16 in May. The index for sales expectations was highest of last six months in the month of May 2010 as it went up by three points to 28.

Increased unemployment has been hampering the growth of economy in the past few months but April months employment reports showed the jobless condition is improving. A number of temporary and permanent jobs have been created by government in various sectors and many non government organizations are providing jobs in various sectors supported by government policies.

Many economists believe the housing market may not slow down in the coming months as the upward trend started in April .The buyers are attracted to the mortgage rates and are ready to invest in homes as they get in stable jobs.

by: Bruce Wills

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