Builder Confidence Rises To Highest Level Since 2007

Builder confidence in the market for newly built, single-family homes rose five points to 29 in May, according to the National Association of Home Builders Housing Market Index. The improvement brought the index to its highest level since May 2007. Barry Rutenberg, chairman of the NAHB, said builders are reporting a pickup in sales and traffic after a pause in April. According to Rutenberg, it’s a sign that the upward trend in confidence that began earlier this year has resumed and that stabilizing prices and excellent affordability are encouraging people to purchase homes. Each of the component indexes measuring current sales, traffic, and expectations for the next six months rose in May after declining in April. More here.

Improving Markets List Holds Steady In May

The National Association of Home Builders’ Improving Markets Index held steady at 100 in May, down from 101 in April. The number of represented states was also virtually unchanged from the month before at 35. The index determines improving housing markets based on metropolitan areas that have had at least six consecutive months of improved housing permits, employment, and home prices. In May, 17 new metros were added to the list, while 83 cities carried over from April. Barry Rutenberg, NAHB’s Chairman, said the fact that there are 100 markets across 35 states that are improving illustrates that the health of the housing market is determined by individual metropolitan areas more than national data. More here.

Builder Confidence Slips For First Time In Seven Months

According to the National Association of Home Builders’ Housing Market Index, builder confidence slipped three points to 25 in April, the first decline after seven consecutive months of gains. The index measures builders’ perception of the market for newly built, single-family homes on a scale where any number below 50 indicates more builders view conditions as poor than good. David Crowe, NAHB’s chief economist, said the decline is a pause in what has been a fairly rapid build-up in confidence since last September. According to Crowe, despite increased interest from potential buyers, builders have yet to see that interest translate into sales activity. Still, regional results show that most of the decline was felt in the Midwest, where confidence was down eight points. The Northeast posted a four point gain and reached its highest level since May 2010. The West was unchanged at 32 and the south dropped three points to 24.