Home Builder Confidence Rises

Builder confidence in the market for newly built, single-family homes rose four points to 18.

Palm Coast, FL – October 19, 2011The October NAHB/Wells Fargo Housing Market Index (HMI) was released Tuesday, The latest HMI says that builder confidence in the market for newly built, single-family homes rose four points to 18. This is the largest one-month gain the index has seen since the home buyer tax credit program helped spur the market in April of 2010.

"This latest boost in builder confidence is a good sign that some pockets of recovery are starting to emerge across the country as extremely favorable interest rates and prices catch consumers’ attention," said NAHB Chief Economist David Crowe. "However, it’s worth noting that while some builders have shifted their assessment of market conditions from ‘poor’ to ‘fair,’ relatively few have shifted their assessments from ‘fair’ to ‘good.’ One reason is that builders are facing downward pricing pressures from foreclosed homes at the same time that building materials costs are rising, and this is further squeezing already tight margins."

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