Confidence among homebuilders hits a six-year high

Bloomberg News
Confidence among U.S. homebuilders climbed in September to the highest level in more than six years, adding to signs of progress in residential construction. More

To continue reading this article, please do one of the following.



ECONOMY

Confidence among homebuilders hits a six-year high

Bloomberg News
Posted 9/24/12

Confidence among U.S. homebuilders climbed in September to the highest level in more than six years, adding to signs of progress in residential construction.

The National Association of Home Builders/Wells Fargo builder sentiment index rose to 40 this month, the highest since June 2006, according to figures from the Washington-based group released last week. The median forecast in a Bloomberg survey of economists called for a rise to 38 from August’s 37. Readings below 50 mean more respondents said conditions were poor.

Cheaper properties and borrowing costs at record lows are attracting buyers and bolstering homebuilders such as Toll Brothers Inc. Sluggish progress in the labor market, domestic fiscal uncertainty and limited access to credit remain headwinds for the industry that helped spur the recession.

“The housing market is moving in a positive direction, but there’s still a long way to go on the road to recovery and several obstacles are slowing our progress,” Barry Rutenberg, chairman of the NAHB and a builder from Gainesville, Fla., said in a statement. “Unnecessarily tight credit conditions are preventing many builders from putting crews back to work – which would create needed jobs – and discouraging consumers from pursuing a new-home purchase.”

Estimates of 47 economists in the Bloomberg survey ranged from 35 to 40. The gauge, which was first published in January 1985, averaged 54 in the five years leading to the recession that started in December 2007. It reached a record low of eight in January 2009.

The builders group’s index of present single-family home sales advanced to 42 this month from 38 in August and a measure of buyer traffic increased to 31 from the prior month’s 30. The index of sales expectations for the next six months jumped to 51 from 43, turning positive for the first time since February 2007.

Next Page
Calendar
PBN Hosted
Events

Two Great Programs...One Great Event. PBN's Annual Celebration of Growth and Innovation is now underway. 2014 applications are now available. Deadline August 1st.
  • Healthiest Employers
    Celebrate with the Healthiest Employers in RI on August 14th at the Providence M ...
  • 40 Under Forty
    Thank you to our sponsors and to all those who attended the 10th Anniversary of ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement