Builder confidence decreases by three points
Posted on Monday, April 16, 2012 at 10:45:38 PM
According to the latest National Association of Home Builders/Wells Fargo Housing Market Index, builder confidence has decreased by three points from 28. The survey asked builders to rate traffic of prospective buyers as high to very high, average or low to very low. It found that specific regions brought down the national ratings while others remained steady.
"Although builders in many markets are noting increased interest among potential buyers, consumers are still very hesitant to go forward with a purchase, and our members are realigning their expectations somewhat until they see more actual signed sales contracts," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB).
As home financing options become easier to attain and the economy continues to gain momentum, builders may see an increase in housing contracts in the near future. As a result. the housing market is seeing more inventories being bought up. Once this becomes more apparent, more homebuyers will come around and express interest in recently designed development or even in orchestrating a customer creation.