By Ian McKendry
WASHINGTON (MNI) – Confidence in the home building market improved
among U.S home builders in October according to the National Association
of Home Builders/Wells Fargo Housing Market Index, released Monday.
The October headline index number improved three points to a level
of 16 which is the highest its been since June of this year. The Outlook
index which measures home builders view of the market six months down
the road improved five points to a level of 23.
“Builders are starting to see some flickers of interest among
potential buyers, and are hopeful that this interest will translate to
more sales in the coming months,” NAHB Chairman Bob Jones said in the
release Monday.
However, Jones warned constrained credit is a “real concern” saying
it may hinder home builders ability to meet demand as consumers decide
to back in the market.
“This problem threatens to severely slow the housing and economic
recovery,” he said.
The index’s present situation component gauging current sales
conditions for single family homes improved three points to a level of
16 and traffic from prospective buyers also improved, up two points to a
level 11.
Regionally, home builder confidence saw the biggest boost in the
South and West, both posting increases of four points, to levels of 18
and 12.
Confidence in the Northeast increased one point to 17 and the
Midwest improved one point to a level of 12.
“The new-homes market is finally moving past the lull that occurred
when the home buyer tax credits expired and economic growth stalled this
summer,” NAHB Chief Economist David Crowe commented in the release
Monday.
“The toughest obstacles really come down to financing the
scarcity of construction credit for builders along with tougher mortgage
requirements for consumers,” Crowe said.
** Market News International Washington Bureau: 202-371-2121 **
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