January 23rd, 2013
Builders say that the demand for new, custom-built properties remains strong.
The latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index held steady at 47 in January. This month’s reading marks an important milestone because after the previous eight consecutive months of gains, the current reading is holding steady at its highest point since April 2006. A number of conditions are measured to calculate builder sentiment, including existing and future sales expectations as well as builder traffic from potential buyers.
“Builders’ sentiment remains very close to the index’s tipping point of 50, where an equal number of builders view conditions as good and poor, and fundamentals indicate continued momentum in housing this year,” said NAHB chief economist David Crowe.
Although some challenges remain, such as access to credit, more buyers are returning to the housing market as rates remain low and home prices begin to strengthen. This is especially true in certain areas of the country, such as the Midwest and South, where the market remained elevated and home equity increased. Housing experts note that affordability in 2012 rose to remarkably high levels, and 2013 is expected to bring a similar level of homeownership opportunities to consumers.
For information regarding interest rates, please contact your local mortgage consultant.