Builders Remain Upbeat

January 17, 2013

Builder confidence in the new-home market mostly held in January, remaining at its highest level since April 2006, according to the National Association of Home Builders/Wells Fargo Housing Market Index. 

The index measures builders’ perceptions over single-family home sales, buyer traffic, and sales expectations for the next six months. The index held at 47 in January — nearing the 50 tipping point, in which an equal number of builders view conditions as either good or poor overall, says David Crowe, NAHB Chief Economist. 

"However, persistently tight mortgage credit conditions, difficulties in obtaining accurate appraisals, and the ongoing stalemate in Washington over critical economic concerns continue to impede the housing recovery," Crowe says. 

Still, "conditions in the housing market look much better now than at the beginning of 2012 and an increasing number of housing markets are showing signs of recovery, which should bode well for future home sales later this year," says Barry Rutenberg, NAHB chairman.

Source: National Association of Home Builders