Home builders more optimistic as economic outlook improves
WASHINGTON – Homebuilders are growing less pessimistic about the housing market, despite tighter lending standards that have slowed home sales.
The National Association of Home Builders/Wells Fargo builder sentiment index rose four points to 25 in January. That's the highest level since June 2007. It's just the third time the index has been at 20 or above in two years. Still, any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached 50 since April 2006, the peak of the housing boom. "Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets," said 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." The index is rising because builders are optimistic that sales will rise this year. In 2011, new-home sales fell and are likely to be the lowest on records going back nearly a half-century.
Posted at 09:32AM Jan 19, 2012 by Lori Kehoe in General | Comments[0]
