Home builder confidence hits milestone - WRCBtv.com | Chattanooga News, Weather & Sports

Home builder confidence hits milestone

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CHATTANOOGA, TN (WRCB) -

Homebuilder confidence has reached its highest point in seven years according to the National Association of Home Builders. And local builders and realtors in Chattanooga agree the housing market is doing well.

Pratt Homes CMO Tina Frizzell said homes are selling fast in the new Canyons at Falling Water neighborhood. The Canyons in Chattanooga is a 10 minute drive from downtown with a view of Signal Mountain.

"People are willing to spend some money and saying let's buy our dream home," she said.

Frizzell said Pratt sold a record 20 homes in May.

"People get raises, new jobs, there's an overwhelming feeling of hope, which is fantastic for Chattanoogans," she said.

For the first time in seven years, the National Association of Home Builders said most U.S. homebuilders are optimistic about home sales. And local realtor Mark Hite said local statistics support the confidence boom.

"If you look at our year to date in Chattanooga we've seen a 15 percent increase in home sales so people are stepping up and buying because they feel better about the market and prospect of future appreciation," he said.

Hite also said the average home price has increased in the past year. Frizzell advised to buy now because she said prices will continue to increase.

"A lot of labor rates are still really good. A lot of prices for material are still very aggressive and of course, as markets recover, these things are commodities. We are at a very good intersection of very affordable labor, materials and produces and low interest rates," she said.

Home builders in the south registered the highest month-to-month confidence gain out of all the regions.

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