Builder confidence swung back 21 points in June to a level of 58 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.
Confidence levels plummeted 42 points in April to a level of 30 at the start of the pandemic, and inched up 7 points in May. Levels above 50 on the index generally indicate a positive outlook on the market, according to NAHB.
NAHB officials stated that the industry is well positioned as the U.S. economy begins opening back up.
"Housing clearly shows signs of momentum as challenges and opportunities exist in the single-family market," NAHB Chief Economist Robert Dietz said in a statement. "Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods. At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market."
