Builder confidence rises in December 2011
Posted on Thursday, December 22, 2011 at 3:50:20 PM
Builder confidence rose in December for the third straight month in a row, according to the National Association of Home Builders (NAHB).
This is positive news for those seeking first time homebuyer credit to finance the purchase of their first home. The NAHB/Wells Fargo Housing Market Index (HMI) indicated that this rise was the highest level the market has seen since May 2010.
"This is the first time that builder confidence has improved for three consecutive months since mid-2009, which signifies a legitimate though slowly emerging upward trend," said NAHB Chief Economist David Crowe.
The figure is determined with a monthly survey that gauges builder perceptions of current single-family home sales and sale expectations for the next consecutive six months as "good," "fair" or "poor." Each score for the categories is calculated with a seasonally adjusted index where any number over 50 indicates that builders as a whole view current conditions as "good."
As builders, banks and consumers grow more confident it will be easier for potential first time home buyers to make that important financial step. A first time homebuyer credit may ease the individual into making the leap into a new financial phase of their life.