Really good news for our custom home builders: home builder confidence has hit a five year high. The NAHB reported that its housing market index rose two points to a total of 37 this month, the highest level since February 2007.

This is the fourth consecutive month the index has jumped, and the results for August were well above expectations. The housing market’s stabilization has been one of the most positive developments in our economy in recent months. It has, after all, been one of its weakest points after the housing bubble burst. As a custom home builder, how have you been taking advantage of the improved market? Have you seen a noticeable improvement in your leads or sales?

The Wall Street Journal reports, “Spending on home construction, home improvements and other parts of real-estate transactions have added to economic growth for five straight quarters, accounting for 0.22 percentage point of the 1.5% growth rate in the first quarter.” NAHB Chairman Barry Rutenberg was also quoted as saying, “”From the builder’s perspective, current sales conditions, sales prospects for the next six months and traffic of prospective buyers are all better than they have been in more than five years. While there is still much room for improvement, we have come a long way from the depths of the recession and the outlook appears to be brightening.”

It’s true that this record is still below historic levels. A reading above 50 means more builders view home buying conditions as good rather than as poor. The index hasn’t recorded that positive since April 2006; at the height of our housing bubble reads rose to the high 60’s and even low 60’s. But just because it’s not the best ever doesn’t mean this isn’t very good news. Every component of the index rose in August, from home builder expectations for sale rising one point and and traffic from potential buyers rising three points. Traffic from current sales conditions did likewise.

The index was based on a survey of 478 builders and results did differ regionally. The index grew by nine points here in the Midwest and two in the south. Unfortunately it declined nine points in the Northeast and three in the West. Our custom home builders in the these areas, have you still been able to make good sales? If other builders aren’t as confident, that may actually give you a leg up in the competition. And for our custom home builders in the Midwest and South, it’s good to see that sales and interest are so high!

A busier market means we really need to focus on grabbing those eyes of home buyers before they look elsewhere. How are you focusing your internet marketing campaign in a sunnier economy? Is your website thriving, blogging up to date, and search traffic strong? Remember that a listing here as well as on other large directories like Top Ten Builders.com or Homebuilders.com will create leads through or site and help improve the search relevance of your own site. As always if you have any questions about your home builder internet marketing, we’d love to hear from you. We wish the best of luck to our custom home builders!