Builder confidence in the market for newly built,
single-family homes edged slightly higher for a sixth consecutive month Builder in October, according to the National
Association of Home Builders/Wells Fargo Housing Market Index released
today. The latest, one-point gain brings the index to 41, its strongest level
since June of 2006.
“The slight gain in builder confidence this month is an indication that, while
still moving forward, the speed at which the housing recovery is proceeding is
being moderated by the various constraints such as tight credit, difficult
appraisals and more recently, the limited inventory of buildable lots in
certain markets,” explained NAHB Chief Economist David Crowe. “These are the
complicating factors that make it difficult for builder confidence to reach and
surpass the 50-point mark, at which an equal number of builders view sales
conditions as good versus poor.”
