Builder confidence had its strongest month in nearly a decade in the NAHB's HMI.

By Peter Ricci

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) posted notable gains in July, rising six points to its highest level since March of 2007.

The six-point increase is the largest one-month gain for the HMI in nearly a decade, and the gains were universal – confidence levels in every region in the U.S. rose, with the Midwest increasing three points to 34 and the South five points to 32.

Barry Rutenberg, the chairman of the NAHB, said the widespread nature of the HMI’s gains suggest good things for construction’s future.

“Builder confidence increased by solid margins in every region of the country in July as views of current sales conditions, prospects for future sales and traffic of prospective buyers all improved,” Rutenberg said. “This is greater evidence that the housing market has turned the corner as more buyers perceive the benefits of purchasing a newly built home while interest rates and prices are so favorable.”

Hazel Goldman, an agent with RE/MAX Pinecrest and a Masters Broker Forum member, said that though single-family construction in her area has been growing slowly the last few months (there’s been much more activity in remodeling and renovations), there are definitely new condo developments in the work throughout Miami, including one in Coconut Grove and some new projected buildings along Miami’s marinas.

And new data from the Census Bureau supports both Goldman and Rutenberg’s perspectives. For June, building permits were up 19.3 percent year-over-year, housing starts 23.6 percent and housing completions 7.2 percent.