Homebuilder confidence reaches 6-year high
Homebuilders constructing single-family homes remained slightly more confident in October with the National Association of Home Builders/Wells Fargo Housing Market Index hitting a level of 41.
The index, which measures homebuilder confidence, generally signifies any score above 50 as a sign of a solid sales environment. The October figure is the highest it's been since 2006, suggesting some positive developments in the market.
"Many builders are reporting increases in the number of serious buyers visiting their sales offices, and the overall confidence measure is much higher than it was at this time last year," said Barry Rutenberg, NAHB chairman.
Still, he said, builders remain concerned about tight credit conditions that tend to stall new purchases and job creation on the construction side of the housing industry.
Builder confidence is up over last month and at its highest level in years, but a sharper recovery is being stalled by difficult appraisals and buyers' inability to access credit, said NAHB chief economist David Crowe.
In October, builder confidence improved in the Midwest and West, with the index scores for those regions hitting 42 and 44, respectively.