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Homebuilders slightly more confident

Retail Editor 2, June 18, 2012

Washington - Builders of single-family homes are feeling a bit more confident about the future, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today.
Confidence grew one point in June to 29 on the Index - the highest level the index has posted since May 2007.
"This month's modest uptick in builder confidence comes on the heels of a four-point gain in May and is reflective of the continued, gradual improvement we are seeing in many individual housing markets as more buyers decide to take advantage of today's low prices and interest rates," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla.
However, cautioned NAHB chief economist David Crowe, builders "continue to report that overly tight lending conditions and inaccurate appraisals are major obstacles to completing sales at this time."
In June, the HMI component measuring current sales conditions rose two points to 32, which is its highest level since April of 2007. Meanwhile, the components measuring sales expectations in the next six months and traffic of prospective buyers held unchanged at 34 and 23, respectively.
By region, gains were strongest in the Midwest and West while optimism declined slightly in the Northeast and the South.