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Home Builder Confidence Up
David Crowe / NAHB / May 15, 2013
Builders expressed renewed confidence in May after a three month drop in the NAHB/Wells Fargo Housing Opportunity Index. The May index rose three points to 44 from a downwardly revised April level of 41. All three components increased: current sales increased four points to 48, expected sales increased one point to 53, a seven year high, and traffic increased three points to 33. Except for future expectations, the main index and the other two components remain below their peaks in December and January.
Builders report buyers are more aggressive in the market now as house prices continue to rise consistently while interest rates and the inventory of existing homes for sale remain low. In a few markets, builders report healthy competition that has allowed them to raise prices.