Could be a sign that the housing industry is on the mend
U.S. homebuilder sentiment unexpectedly jumped in January to its highest level in four and a half years, suggesting the housing market is starting to heal, the National Association of Home Builders said on Wednesday.
The NAHB/Wells Fargo Housing Market index rose to 25 from 21 the month before, the group said in a statement. Economists polled by Reuters had predicted the index would hold steady at 21.
It was the highest level since June 2007 when the housing market was crumbling. After stagnating in a tight range for about a year, the index has been improving since October 2011, reinforcing optimism the housing market is finding a bottom.
Still, the index is a long way from the 50 mark, indicating more builders view market conditions as poor than favorable. It has not been above 50 since April 2006.
"Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011," David Crowe, chief economist at NAHB, said in the statement.
"That said, caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost, and the continuing flow of foreclosed properties hitting the market."
The current sales component index rose to 25 from 22, while the gauge of sales expectations for the next six months climbed to 29 from 26. Prospective buyer traffic gained to 21 from 18.
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Homebuilder sentiment at 4-1/2-yr high, survey shows: News GayRealEstate http://gayrealestate.typepad.com/gayrealestate_usa/2012/01/homebuilder-sentiment-at-4-12-yr-high-survey-shows-.html #realtor #realestate
Posted by: Gay Real Estate News ~ GayRealEstate.com | Thursday, January 19, 2012 at 10:06 AM