National Real Estate - Builder Confidence Up in December, Eighth Month of Index Improvements



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Builder Confidence Up in December, Eighth Month of Index Improvements

 
With a lower inventory of delinquent and existing single-family homes for sale, many builders have reported seeing the best sales in over five years. The most recent National Association of Home Builders Housing Market Index reveals builder confidence rose for the eighth month in a row, reaching levels previously seen before the downturn of the market.

Thursday, December 27th, 2012


With a lower inventory of delinquent and existing single-family homes for sale, many builders have reported seeing the best sales in over five years. The most recent National Association of Home Builders Housing Market Index reveals builder confidence rose for the eighth month in a row, reaching levels previously seen before the downturn of the market.

The HMI increased two points from November to December, boosting the index to 47, paralleling other housing market factors that have been improving throughout the year. With a booming market throughout 2012, more consumers have bought up the previously high inventory seen in 2011 and the earlier half of this year. Less existing homes paired with affordable mortgage rates have likely allowed more consumers to purchase newly built properties. One government-sponsored enterprise, Freddie Mac, recently announced that mortgage rates will likely remain below 4 percent for much of 2013, meaning sales of new construction could continue to rise next year, pushing builder confidence even higher.

"Builders across the country are reporting some of the best sales conditions they've seen in more than five years, with more serious buyers coming forward and a shrinking number of vacant and foreclosed properties on the market," said Barry Rutenberg, NAHB chairman. "However, one thing that is still holding back potential sales is the difficulty that many families are encountering in getting qualified for a mortgage due to today's overly stringent lending standards."

Many economists previously predicted that strict lending restrictions would loosen before the end of this year, it remains a concern of both consumers and builders. The standards once set in place to prevent a repeat of the boom followed by a drop in ability to keep up with monthly mortgages led to a large number of foreclosures which began the spiral of the housing market slump.

NAHB's chief economist notes that there are many improvements to be made, though the slow but steady recovery will continue to occur with home prices on the rise. Economic factors including increased job opportunities and the return of consumer sentiment will also help the nation's housing market, as well as builder confidence.

National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.

National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.