The National Association of Home Builders is reporting that their Housing Market Index was up four points from May to 49 in June which is one point short of the threshold of 50 considered to be “good” building conditions. The index had actually been above the 50 mark for the better part of 2013 before dropping sharply in February as the housing market declined. Analysts pointed out that a very tight inventory continues to drive up prices and many potential buyers are reacting with caution.
It’s important to note that housing construction is also important for the California job market in California as over 10 percent of all jobs created in the state since the start of 2013 have been in construction.
Home builders remain even optimistic about the upcoming six months, according to the Association.