Builder confidence for newly built, single-family homes declined in April by three points to 25, according to the National Association of Home Builders/Wells Fargo Housing Market Index, released today. This is the first time in seven months that the confidence rating has declined.
LotNetwork.com looks at the trends behind the numbers:
- It’s not surprising to see some decline in builder confidence after six straight months of a fairly swift build-up in confidence.
- There are certainly signs of recovery and optimism in the market, but many consumers and builders are hesitant and cautious about the challenges that still exist in the housing industry, especially tight credit conditions, foreclosures and inaccurate appraisals.
- There’s sure to be a reaction in the market to today’s news, but we’re keeping a hopeful eye on the fact that, even with the decline, confidence has been trending up and beyond its highest level since 2007.
- Builder Sentiment Recovers after April Drop (mortgagenewsdaily.com)
- Housing starts, industrial production both rose in April (usatoday.com)
- NAHB Builder Confidence increases in May, Highest since May 2007 (woodonfire.wordpress.com)