Tuesday, October 16, 2012

October Builder Confidence at Highest Level Since 2006

Builder confidence in the market for newly built, single-family homes edged slightly higher for a sixth consecutive month Builder in October, according to the National Association of Home Builders/Wells Fargo Housing Market Index released today. The latest, one-point gain brings the index to 41, its strongest level since June of 2006.

“The slight gain in builder confidence this month is an indication that, while still moving forward, the speed at which the housing recovery is proceeding is being moderated by the various constraints such as tight credit, difficult appraisals and more recently, the limited inventory of buildable lots in certain markets,” explained NAHB Chief Economist David Crowe. “These are the complicating factors that make it difficult for builder confidence to reach and surpass the 50-point mark, at which an equal number of builders view sales conditions as good versus poor.” 

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