Homebuilder Confidence at 6-Year High – Bloomberg Reports
Experts who argue that the national economy is seeing significant growth out of its post-recession mire can add another strong supporting stat to their arsenal this month, as indexes show that homebuilder confidence hit a six-year high in November.
The U.S. posted an increase in real estate sales this month as well, with sales of existing homes up 2.1 percent as the average fixed rate on a 30-year loan dropped to a record-low 3.34 percent.
As the rest of the country’s real estate markets plays catch-up, Central Texas has been a seller’s market since May and A List Partners has been at the forefront of smart real estate investment as property prices continue their climb. A List Partners’ strategy of prudent investing has allowed us to continue to offer our members rate of 4-10% on their investments, while big banks offer anemic rates like 0.3%.
Read more about this month’s housing numbers below in Shobhana Chandra’s coverage for Bloomberg News.
Homebuilder Confidence Rises to Six-Year High on U.S. Sales
Confidence among U.S. homebuilders unexpectedly climbed in November to a six-year high, propelled by the biggest jump in sales in a decade, adding to signs the real-estate market is improving.
The National Association of Home Builders/Wells Fargo index of builder confidence increased to 46, the highest level since May 2006, from 41 in October, figures from the Washington-based group showed today. The median forecast in a Bloomberg survey of 49 economists called for no change. Readings below 50 mean more respondents said conditions were poor.
Companies like Toll Brothers Inc. (TOL) are benefiting as more affordable properties and record-low mortgage rates bring buyers into the market. Faster hiring, fewer foreclosures and easier credit would ensure a sustained rebound in the industry that was at the center of the 2008 financial crisis.
“Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country,” Barry Rutenberg, chairman of the National Association of Home Builders and a builder from Gainesville, Florida, said in a statement. “Many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates.”
Another report today from the Realtor group showed that sales of previously owned U.S. homes climbed in October. Purchases of existing houses, tabulated when a contract closes, increased 2.1 percent to a 4.79 million annual rate. The median price rose from a year earlier as inventories dropped to the lowest level in almost a decade. … Read the rest of the article here.