Builder Confidence Improves Slightly in November

November 16th, 2010 by Editor

Builder confidence in the market for newly built, single-family homes improved slightly in November, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), released today. The HMI rose one notch to 16 from a downwardly revised level of 15 in the previous month.

“Though the gains have been incremental, the fact that builder confidence has improved over the past two months is encouraging,” says NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. “Many builders are reporting that while the quantity of buyer traffic through their model homes has not improved dramatically, the quality of that traffic seems to be getting better – meaning that more people appear to be serious about buying in the near future.”

“The most positive aspect of today’s report is the future expectations component, which not only held onto the five-point gain it registered in October, but improved by an additional two points to 25 for November,” adds NAHB chief economist David Crowe. “This is the highest that component of the HMI has been since the home buyer tax credit program spurred sales activity this spring …. The most concerning aspect of the report is that survey participants say they have observed absolutely no improvement in their ability to access credit to build viable new projects. This problem is clearly a roadblock to recovery in many markets.”

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