Builder confidence increases in November

November 20th, 2012

Builders say they are experiencing greater demand for homebuilding.

A new report conducted by the National Association of Home Builders suggests that many consumers may be more interested than building their own customized house, rather than going through a mortgage service company to purchase one.

The latest index shows builder confidence in the single-family home market experienced a five-point gain during the month of November, marking the seventh consecutive month of increased optimism.

“Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country,” said NAHB chairman Barry Rutenberg. “In view of the tightening supply and other improving conditions, many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates.”

While there may be an increase in homebuilding, there is still a strong market for existing properties. Data from the National Association of Realtors shows that existing-home sales increased in October, rising 2.1 percent to a seasonally adjusted annual rate of 4.79 million properties.