Builder confidence rises in November

The National Association of Home Builders Market Index for November found builder confidence in the market for single-family homes increase three points to 20, the highest confidence level since May 2010.

“While this second solid monthly gain on the builder confidence scale is encouraging, the overall measure remains quite low due to the many challenges that home building continues to face with regard to the high number of foreclosures, the difficulties of obtaining construction financing and accurate appraisals, and the restrictive lending environment that is discouraging potential buyers,” said Bob Nielsen, NAHB Chairman. “We are anticipating further, gradual gains in the builder confidence gauge heading into 2012 due to these pockets of improving conditions that are slowly spreading.”

The Washington Post reported builders are still combating foreclosures and home value depreciation, making it difficult for buyers to obtain loans or meet heightened down payment requirements. In addition, low appraisals are being reported after contracts have been signed, disrupting sales. And many buyers are still waiting to upgrade to a new house after they sell their existing home.

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