The two point increase edged up the original reported number of 21, marking the third consecutive month that builder confidence improved, which might encourage prospective homeowners to request moving quotes for a new home.
The index, which gauges builder perception of the outlook of the market for the next six months, is now the highest since May 2010, but still remains low. The increase in the index is a welcome sign that the market is slowly recovering.
“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 David Crowe, chief economist for the NAHB. “While large inventories of foreclosed properties continue to plague the most distressed markets and consumer worries about job security and the challenges of selling an existing home remain significant factors, builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”
Even though builder confidence is up, home builder stocks remain stagnant, according to the Wall Street Journal.
More News