Builder Optimism Highest Since 2006
Washington, DC, Nov. 19, 2012 -- Builder confidence in the market for single-family homes posted a solid, five-point gain to 46 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for November.
This marks the seventh consecutive monthly gain in the confidence gauge and brings it to its highest point since May of 2006.
“Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country,” said NAHB Chairman Barry Rutenberg.
“In view of the tightening supply and other improving conditions, many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates.”
Last year the index was at 19. Readings above 50 indicated that more builders see conditions good than poor.
“At this point, difficult appraisals and tight lending conditions for builders and buyers remain limiting factors for the burgeoning housing recovery, along with shortages of buildable lots that have begun popping up in certain markets,” said NAHB Chief Economist David Crowe.