Builders see positives in moving market

Though they're still largely pessimistic regarding the housing market, builders have been pleased to note a rising number of people moving to new homes.

That was enough to drive the National Association of Home Builder's Housing Market Index three points higher to 16 in October. An indication of the confidence level of the nation's home builders, the index experienced its first increase in five months in October and was at its highest level since June. Even so, most builders remain pessimistic, as any reading below 50 on the index indicates that more builders hold negative opinions about the state of housing.

"Builders are starting to see some flickers of interest among potential buyers, and are hopeful that this interest will translate to more sales in the coming months," said NAHB chairman Bob Jones. "However, because most builders still have no access to credit for building homes, there is a real concern that we will not be able to meet the pent-up demand when consumers are ready to get back in the market."

Jones added that the low levels of builder credit could threaten the nation's housing recovery.

Issues of credit and tightening mortgage standards have complicated moving plans for many families nationwide. A recent survey by FindLaw.com discovered that 63 percent of Americans find the recent economy to be inhibitive to their plans of moving into a new home.
 

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