Builder confidence is at highest level since 2006, with index posting sixth consecutive gain

Miami /
Oct.October 16, 2012 03:45 PM

Builder confidence for newly built, single-family homes posted its sixth consecutive increase, a one-point month-over-month gain, according to the National Association of Home Builders and Wells Fargo. The gain brings the index to 41 from 40, which continues keeping the score at its strongest level since June 2006.

September posted a three-point gain and August posted a two-point increase. In July, there was a six-point spike.

NAHB Chairman Barry Rutenberg said that while builders report an increase in the number of serious buyers stopping by their sales offices, challenges remain.

“The concern is that, even though demand for new homes is rising,” he said in the release, “overly tight credit conditions are still constraining new building and new purchases at a time when that kind of economic activity and the job growth it generates are greatly needed.”

David Crow, NAHB’s chief economist, echoed Rutenberg’s sentiment, adding that difficult appraisals and limited inventory for buildable lots in some markets are additional challenges.

“These are the complicating factors that make it difficult for builder confidence to reach and surpass the 50 point mark,” he said.

Scores above 50 represent positive builder sentiments on the scale, which spans 1-100.

Broken down by current sales conditions and sales prospects for the next six months, the respective indices of 42 and 51 remained unchanged. The metric that measured traffic of prospective buyers climbed five points to 35, which is its highest level since 2006.

And broken down by region, the index gained two points in the Midwest and West for a respective 42 and 44 for the month. The South gained three points, bringing its index to 39 and the three-month average for the Northeast held steady at 29. — Zachary Kussin


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
4238-4276 Northwest 7th Street in Miami, Avison Young’s Michael Fay, John Crotty, David Duckworth, Brian de la Fé, Emily Brais and Berkley Bloodworth

Mixed-use Le Jeune Road dev site heads to market for $17M

Mixed-use Le Jeune Road dev site heads to market for $17M
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
arrow_forward_ios

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

Loading...