Builder confidence in the new-home market mostly held in January, remaining at its highest level since April 2006, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
The index measures builders’ perceptions over single-family home
sales, buyer traffic, and sales expectations for the next six months.
The index held at 47 in January — nearing the 50 tipping point, in which
an equal number of builders view conditions as either good or poor
overall, says David Crowe, NAHB Chief Economist.
"However, persistently tight mortgage credit conditions, difficulties
in obtaining accurate appraisals, and the ongoing stalemate in
Washington over critical economic concerns continue to impede the
housing recovery," Crowe says.
Still, "conditions in the housing market look much better now than at
the beginning of 2012 and an increasing number of housing markets are
showing signs of recovery, which should bode well for future home sales
later this year," says Barry Rutenberg, NAHB chairman.
Source: National Association of Home Builders