–Home Builders View Mkt in 6 Months as ‘Good’ For First Time Since 2007
By Ian McKendry
WASHINGTON (MNI) – U.S. home builders confidence in the new home
market grew for the fifth consecutive month in September and is the
highest it has been in over five years, the National Association of Home
Builders reported Tuesday.
The NAHB/Wells Fargo housing market index, which measures builders
confidence, found builders not only are more optimistic about the
current building environment, but are hopeful sales conditions will
actually be “good” six months down the road.
The composite index reached a five-year high of 40 in September
from 37 in August, the report said. That category has not been above 50
since April 2006.
But the six month outlook index rose to 51 from 43, breaking the 50
threshold for the first time since February 2007.
While the latest report from the NAHB is further proof the
housing market is improving there are still numerous headwinds, the
report said.
“In particular, unnecessarily tight credit conditions are
preventing many builders from putting crews back to work — which would
create needed jobs — and discouraging consumers from pursuing a
new-home purchase,” NAHB Chair Barry Rutenberg said.
NAHB Chief Economist David Crowe said there also are concerns about
a lack of building lots and rising costs of materials. “Given the
fragile nature of the housing and economic recovery, these are
significant red flags.”
The survey for the seasonally-adjusted index asks builders if they
view the market as “good,” “fair” or “poor” and any number over 50
indicates builders view the market as good, while anything less than 50
is poor.
** MNI Washington Bureau: 202-371-2121 **
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