Thursday, October 21, 2010

Builder Confidence Climbs in October

According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for October, builder confidence in the market for newly built, single-family homes rose three points to 16. This was the first improvement registered by the HMI in five months, and returns the index to a level last seen in June of this year.

"Builders are starting to see some flickers of interest among potential buyers, and are hopeful that this interest will translate to more sales in the coming months," said NAHB Chairman Bob Jones. "However, because most builders still have no access to credit for building homes, there is a real concern that we will not be able to meet the pent-up demand when consumers are ready to get back in the market. This problem threatens to severely slow the housing and economic recovery."

Echoed NAHB Chief Economist David Crowe, "Builders have seen a slight increase in consumers who are considering a home purchase. The toughest obstacles really come down to financing - the scarcity of construction credit for builders along with tougher mortgage requirements for consumers."

All three of the HMI's component indexes registered gains in October. The index gauging current sales conditions rose three points to16, while the index gauging sales expectations in the next six months rose five points to 23, and the index gauging traffic of prospective buyers rose two points to 11.

Builder confidence improved across every region in October. The South and West each posted four-point gains, while the Northeast and Midwest each posted single-point gains.

Contact me by phone or email to find the best areas in Mercer County for new home developments.

Joe Giancarli, SA
Real Estate Advisor

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