NAHB Housing Index Jumps to 25 in January

Builders’ confidence in the market for new single-family homes improved but remained low as the National Association of Home Builders’ housing market index — a monthly gauge of builder sentiment — rose to 25 in January, its highest level since June 2007, from 21 in December.

Thomson Reuters’ poll of economists predicted the index would be 22.

“Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011,” said NAHB chief economist David Crowe.

“That said, caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost, and the continuing flow of foreclosed properties hitting the market.”

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