Builder confidence for single-family homes rose for the fourth consecutive month, reaching a level in January not seen since June 2007, according the National Association of Home Builders (NAHB). The NAHB/Wells Fargo Housing Market Index indicated that confidence rose four points to 25.
Builder confidence was up across all regions with a nine point increase in the Northeast. Additional data from the index shows that more builders view the market as good rather than poor, with builders expecting to see an increase in prospective buyers. The component gauging that sentiment also reached its highest level since 2007.
“Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011,” noted NAHB Chief Economist David Crowe. “That said, caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost, and the continuing flow of foreclosed properties hitting the market.”
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