The construction industry across the United States is picking up with builder confidence showing some positive movement. As it happened, it was mere weeks ago when the National Association of Home Builders/Wells Fargo Housing Market Index pointed out that a figure of 47 marked the eighth month in a row where improvements have been made in builder confidence. This statistic can be deduced by understanding that the critical midpoint score is a 50 as this signifies an equal level of buildings who view the market as either in a positive or negative state. It comes to be known that this level of 50 for the HMI has not been achieved since back in April of 2006; thus showing how strong these recent findings are.
Now, just as of January 16th, the NAHB/Wells Fargo Housing Market Index reported that builder confidence is stable, and is once again pegged at 47. Although an increase was not once again realized for what would have been the ninth consecutive month, the number holding at 47 is still the highest result ever achieved since the aforementioned month April in 2006.
Barry Rutenberg, the Chairman of the National Association of Home Builders (NAHB) and who is also a home builder in Gainesville in Florida, shared a message that, 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. However, uncertainties stemming from last months fiscal cliff negotiations contributed to the pause in builder confidence and continuing discussions among policymakers related to spending cuts and the future of the mortgage interest deduction could put a damper on housing demand in the coming months.
Furthermore, the NAHB Chief Economist David Crowe also had a statement on these most recent findings, Builders sentiment remains very close to the indexs tipping point of 50, where an equal number of builders view conditions as good and poor, and fundamentals indicate continued momentum in housing this year. 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.
In due time it is the hope and expectation that the issues in Washington will come to fruition and that the housing market can continue to build upon the vast successes realized in 2012. With everything considered, the fact that stability is the status quo in terms of builder confidence, it is a sure plus.
More Information: NAHB