Dive Brief:
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On the same day the Commerce Department reported a sizeable one-month decline in residential construction for August, the National Association of Home Builders said its members are feeling more optimistic about the housing market than they have since 2005.
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NAHB’s monthly index measures builder confidence in the market for new, single-family homes. The index rose from a level of 55 in August to 59 in July, 3.5 points higher than economists had predicted.
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NAHB Chairman Kevin Kelly attributed the optimism to an uptick in buyer traffic at new home communities.
Dive Insight:
Builder optimism is usually a sign of good things to come for home construction. While housing starts for new homes was down by 2.4% in August, builders could be counting on an improving job market to lead more Americans to invest in real estate.