Homebuilder Confidence Best Since May 2010

Confidence among U.S. homebuilders unexpectedly climbed in November to the highest level since May 2010, a sign the outlook for construction may be stabilizing.

The National Association of Home Builders/Wells Fargo index of builder confidence rose to 20 from a revised 17 in October that was a point lower than first reported, the Washington-based group said today. Economists projected an index of 18, according to the median forecast in a Bloomberg News survey. Readings below 50 mean more respondents said conditions were poor.

Borrowing costs near a record low and efforts by the Federal Reserve to spur demand may be starting to bear fruit. At the same time, the prospect of more foreclosed properties returning to the market and competing with new construction means a sustained rebound in housing may be years away.

“The trends are pretty flat but not getting worse, so builders may be less depressed,” Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, said before the report. “We expect there will be some marginal improvement at best, helped by lower mortgage rates.”

MORE...

http://www.bloomberg.com/news/2011-11-16/homebuilder-confidence-best-since-may-2010.html

jump-start my day.

Additions to the glut in the housing market.

That should be good for boosting builder confidence!
More people can buy houses at the cheaper prices?

we have to have true price discovery and dry up excess inventory. As long as the banks keep holding inventory off the market and refuse to lower their still over inflated prices-the market will not recover. The prices have not come down to a realistic level in line with folks real wages. The banks have not taken hair cuts yet, just the home owners. Banks refuse to deal with people upside down in their mortgages and would rather foreclose and resell at a higher rate now that we have a recovery going :sarcasm: :eyes:

Let the owners lose their equity, there will be another sucker come along.

Homebuilder confidence is like wishing for a gold toilet. Yes it would be nice but it just isn't in the cards now.