Finally a bit of good news out of the construction industry. The National Association of Home Builders/Wells Fargo index of builder confidence came out this week, sitting at 21, which is the index’s highest point since May of 2010. It was the third straight month that the index grew, and an indication that the housing may finally might be stabilizing.
Of course, it’s not all good news. The index is still low — any number below 50 indicates that more people are pessimistic about the market than are confident — and a new wave of foreclosures threatens to create a glut in the market. But let’s look on the bright side as we head in to the holidays.
Confidence among U.S. homebuilders rose in December for a third consecutive month, a sign of stabilization in the housing market.
The National Association of Home Builders/Wells Fargo index of builder confidence climbed to 21, the highest level since May 2010, from a revised 19 in November that was lower than first reported, the Washington-based group said today. Economists projected an index of 20, 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 are attracting some prospective home buyers. At the same time, another wave of foreclosures, which would put more existing homes in competition with new ones, means a sustained housing recovery may be years in the making.
Read more on Bloomberg News.