Builder Confidence Remains Stable in January

optimistic builderThe New Year is certainly starting off on the right foot for home builders. According to the National Association of Home Builders/Wells Fargo Housing Market Index, builder confidence has remained at a steady 47 for the past month, which is higher than any rating recorded since April 2006
“Builders’ sentiment remains very close to the index’s tipping point of 50, where an equal number of builders view conditions as good and poor, and fundamentals indicate continued momentum in housing this year,” said NAHB Chief Economist David Crowe.
However, there are still a few obstacles standing in the way of a full recovery. Banks are still adhering to strict lending standards, and uncertainties from last month’s fiscal cliff put a small damper on housing projects.
The current sentiment is a major change from last year; in January 2012, the builder confidence rate was only at 25. Solid housing prices, and current sales of existing homes are fueling increased builder activity in 2013, and according to Chris Huecksteadt, Director of Midwest Markets for Metrostudy, there are currently more than 55,000 builder ready new home sites in the greater Chicago area. This gives homebuilders a great opportunity to make this year the beginning of a new era in the housing industry.

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