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Wednesday, February 20, 2008

Builder Confidence Rises Slightly

From Realtor Magazine Online, Daily Real Estate News February 20, 2008

Builder confidence in the market rose in January, according to the National Association of Home Builders//Wells Fargo Housing Market Index.

The index, which gauges current sales conditions for single-family homes, rose one point to 20, while the index gauging sales expectations for the next six months declined one point to 27. Meanwhile, the index gauging traffic of prospective buyers rose five points to 19, its highest level since July of 2007.

The overall optimism was driven by increasing traffic of prospective buyers through model homes, the association reported.

"While builders remain very cautious about the outlook for new-home sales, given today's economic environment, the fact that more consumers appear to be checking out their options is a good sign," says Sandy Dunn, a home builder from Point Pleasant, W. Va., and the newly elected 2008 president of the National Association of Home Builders.

The builders' chief economist David Seiders says the membership was encouraged by the increasing interest but still cautious.

"Builders know there's a difference between people looking and people buying, and their current outlook remains quite subdued," Seiders says. "Additional stimulative measures on the legislative and policy side are definitely needed to bolster consumer confidence and help bring about a housing and economic recovery."

Source: National Association of Home Builders, Paul Lopez (02/20/08)

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