Posted in Industry News
Builder Confidence Rises in Fourth Quarter
The fourth quarter of 2014 has seen an increase in builder confidence, according to a new report from the National Association of Home Builders. November’s results from the NAHB/ Wells Fargo Housing Market Index went up to 58, four points over October’s reading, further proving that builders’ continue to feel confident in the housing recovery.
This latest increase reflects the fifth month in a row where the index has come in above 50, the scale’s benchmark “normal” level. Even though 2014 was slow to start, the housing market did well in each of the index’s three measured components; current sales, expected sales and traffic rising. The first rose five points to 62, the second went up two points to 66 and the third increased four points to 45. While these readings were close, they did not exceed the most recent highs in September of 63, 67 and 47.
As homebuyers benefit from low mortgage rates, price appreciation of their existing homes and affordable new home prices, builders are mirroring that optimism in turn. As the industry moves into 2015, pent up demand will push forward single-family home production above 800,000. Experts agree, the majority of this increase will come from current home owners who have gone through changes in their life that have caused delays in home buying.
Read the full article from NAHB here.
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