Builder confidence hits a six-year high

New York /
Sep.September 18, 2012 11:00 AM

Continuing the recent momentum, builder confidence in the housing market for newly built, single-family homes increased three points from last month’s count, reaching 40, according to the National Association of Home Builders, which represents the housing industry, and Wells Fargo. The September number comes after a July spike and a slight climb last month. September’s three-point climb brings the builder confidence index to its highest level since June 2006.

“This fifth consecutive month of improvement in builder confidence provides further assurance that the housing market is moving in a positive direction, but there’s still a long way to go on the road to recovery and several obstacles are slowing our progress,” said Barry Rutenberg, NAHB’s chairman, in the release. Specifically, he continued, “unnecessarily tight credit conditions are preventing many builders from putting crews back to work — which would create needed jobs — and discouraging consumers from pursuing a new-home purchase.”

Each of the three Housing Market Index components saw gains this month. Current sales conditions climbed four points to 42, sales expectations in the next six months increased eight points to 51 and traffic of prospective buyers inched up one point to 31. Broken down by region, the Midwest and West posted five-point gains — to a respective 40 and 43. The South saw a four-point gain to 36 and the Northeast inched up two points to 30.

The NAHB/Wells Fargo scale records sentiments on a 1-100 scale. Scores of 50 and above reflect positive sentiments.

NAHB’s Chief Economist David Crowe mentioned in the release that despite the improved numbers this month, caveats remain.

“Against the improving demand for new homes, concerns are now rising about the lack of building lots in certain markets and the rising cost of building materials,” he said. “Given the fragile nature of the housing and economic recovery, these are significant red flags.” — Zachary Kussin


Related Articles

arrow_forward_ios
A recent study that found 1 in 10 Black homeowners returned to renting between 1984 and 2017 (iStock)

Black homeowners twice as likely to lose homes and return to renting: Report

Black homeowners twice as likely to lose homes and return to renting: Report
NAR president Vince Malta (NAR, iStock)

NAR amends code of ethics to ban public hate speech

NAR amends code of ethics to ban public hate speech
(Getty, iStock)

National Association of Realtors cracks down on hate speech

National Association of Realtors cracks down on hate speech
Wells Fargo CEO Charles Scharf (Scharf by Win McNamee/Getty Images; Unsplash)

Borrowers sue Wells Fargo over forbearance policy

Borrowers sue Wells Fargo over forbearance policy
Some of the world’s biggest banks — including Wells Fargo and Deutsche Bank — have engaged in a systematic fraud that allowed them to award borrowers bigger loans than were supported by their true financials (Credit: Alex Gottschalk/DeFodi Images; MANJUNATH KIRAN/AFP via Getty Images)

Whistleblower: Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds

Whistleblower: Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds
Solly Assa and Cassa Hotel and Residences (Credit: Billy Farrell/Patrick McMullan via Getty Images, Google Maps)

Troubled loan on Cassa Hotel residences in Times Square falls into delinquency

Troubled loan on Cassa Hotel residences in Times Square falls into delinquency
From left: Eagle Lofts at 43-22 Queens Street in Long Island City, 292 North 8th Street in Williamsburg and The Landing at 15 Bridge Park Drive in Brooklyn Heights (Credit: Rockrose Development, Stonehill & Taylor Architects and StreetEasy)

Rockrose’s $350M haul tops March list of outer-borough loans

Rockrose’s $350M haul tops March list of outer-borough loans
10 East 53rd Street and SL Green's Marc Holliday (Credit: TPG Architecture, Sl Green)

SL Green snags $220M refi for Midtown East office tower

SL Green snags $220M refi for Midtown East office tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...