National builder confidence in the market for newly built, single-family homes increased by 2 points to 21 on the National Association of Home Builders/Wells Fargo Housing Market Index for December, released today, marking a third consecutive month in which builder confidence has improved. Confidence was higher than it has been since May 2010, according to the report.

Despite overall gains in confidence, confidence dropped in Northeast, slipping by one point to 15. Gains were primarily made in the South in December, where a 4-point gain to 25 brought that region’s Housing Market Index score to its highest level since March of 2008. A 1-point gain to 16 was registered in the West, while the Midwest was unchanged at 24. – Katherine Clarke [more]

In the latest twist resulting from federal ownership of mortgage insurers Fannie Mae and Freddie Mac, House Republicans and Senate Democrats agree that the companies should increase their fees to fund a payroll-tax cut extension. According to the Wall Street Journal, democrats are calling for a one-eighth of a percent fee increase while republicans propose a one-tenth of a percent increase.

Fannie and Freddie currently charge about one-quarter of a percent fee to lenders when they buy loans, and lenders typically pass that cost along to borrowers. [more]

Sales of new homes rose in October, but remained at historically weak levels, according to a report released today by the U.S. Department of Commerce. Sales activity gained 1.3 percent over September and 8.9 percent compared to October 2010, standing at a seasonally-adjusted rate of 307,000 units. The median sales price of a new home in the month was $212,300.

“While this trend is encouraging, overall sales activity is still well below normal,” said National Association of Home Builders Chairman Bob Nielsen. – Adam Fusfeld [more]

Home builder confidence has improved significantly across the board this month, according to the National Association of Home Builders/Wells Fargo Housing Market Index released today, reaching its greatest height since April 2010.

The index, which surveys home builders’ confidence on a monthly basis and measures it on a 1 to 100 scale where any number over 50 indicates more builders view conditions as good than as poor, gained 4 points and hit 18. It had been hovering between 13 and 17 since last spring. The index measuring sales conditions also increased 4 points to reach 18, sales expectations rose 7 points to 24 and the index measuring prospective buyer traffic jumped 3 points to 14. – Adam Fusfeld [more]

Nationwide housing starts dropped by 5 percent in August to 571,000 units from a month previous, according to figures released today by the U.S. Commerce Department. The decline was primarily related to multi-family properties, the report notes, with single-family housing production declining by only 1.4 percent.

“At this point, most builders are only looking to replenish their depleted inventories of new homes for sale, but otherwise holding off on new projects,” said Bob Nielsen, chairman of the National Association of Home Builders. – Katherine Clarke [more]

After a doom-and-gloom June, confidence rose slightly among U.S. home builders in July, according to a report released today by the National Association of Home Builders. The Housing Market Index, which gauges builder perception of the single-family market, rose 2 points to 15, but remains far below 50, the number indicating a positive outlook.

The index has hovered between 13 and 17 in every month since June 2010, and last exceeded 50 in April 2006. Bob Nielsen, chairman of the association, attributed another month of low confidence levels among home builders to the competition from low-priced foreclosed properties, inaccurate appraisals of new homes and the restrictive lending environment. – Adam Fusfeld [more]

Confidence in the housing market amongst builders fell in April, according to the latest data from the National Association of Home Builders and Wells Fargo. Builders’ confidence had risen 1 point in March after four straight months of holding steady, but last month returned to its original, lower level, the NAHB said today. Builders of new, single-family homes are seeing a slow start to the spring home buying season, the trade organization said: there’s more traffic, but buyers are still wary of the strength of the recovery. In particular, consumers are reacting to “recent legislative and regulatory proposals that could make it much harder to get a mortgage,” said Bob Nielsen, chairman of the NAHB. David Crowe, chief economist at the NAHB, said “the best sales activity appears to be happening in the lower price ranges, where first-time buyers have greater flexibility than repeat buyers who must sell their current home.” TRD

Builder confidence in the market for newly built, single-family homes remained unchanged at a rate of 16 for a fourth consecutive month in February, according to the National Association of Homebuilders/Wells Fargo Housing Market Index, released today. The index gauges builder perceptions of current single-family home sales and sales expectations for the next six months, and anything below 50 means builders consider conditions poor. “While builders are starting to see more interest among potential home buyers, we are also dealing with a multitude of challenges, including competition from foreclosure properties and inaccurate appraisals of new homes, which are limiting our ability to sell,” said Bob Nielsen, chairman of the NAHB. TRD 2 Comments

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Most homebuyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns, according to the National Association of Homebuilders. The credit — which was offered for qualified home purchases in 2008, 2009 and 2010 — has different repayment rules depending on when the home was purchased and as tax season approaches, this may cause confusion. “It is important that homebuyers consult a qualified tax professional to make sure they are receiving all the tax benefits as well as fulfilling the obligations of their home purchase,” said Bob Nielsen, chairman of the NAHB and a home builder from Reno, Nev. The Internal Revenue Service is sending a letter to taxpayers who claimed the credit that explains the repayment options. The credit for homes purchased in 2009 and 2010 does not have a repayment requirement unless the home ceases to be used as the taxpayer’s principal residence within three years of the purchase. The homebuyer tax credit program expired for the majority of Americans in 2010, with some exceptions, such as service members who were on duty. TRD