A recent press release from the National Association of Home Builders showed that for the sixth month in a row, more homebuilders saw confidence in the market conditions. The index with a level of 54, which means more homebuilders view conditions as good than poor, is just another indicator that recovery continues, but is not over. As a point of reference, the same survey in February 2012 measured a rating of 29, which at that time was the highest level the index had reached in more than four years. In a little less than two years, the index has nearly doubled.
The Midwest region, which directly borders Pittsburgh, has a rating of 60, while the rest of the Northeast region that encompasses Pennsylvania is measured at 39.
The rating of 54 was derived based upon a survey of homebuilders and asked them to rate their expectations for the new six months using a scale of good, fair or poor.
While Pittsburgh did not fully escape the Great Recession, homebuilding activity in the region continues to rise fueled by low interest rates, an unemployment rate of 7.2%, which is slightly below the national average, and the recent boom in natural gas development.
The National Association of Home Builders also expressed caution, noting that some consumers are delaying home purchasing because “Congress keeps pushing critical decisions on budget, tax and government spending issues down the road.”
As we continue on the long road back to recovery, it is just one more small reason to continue to feel that this recovery may be real.
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