Tag Archive for confidence

Older Buyers Boost Builders’ Expectations

February 5, 2014 Housing Market Comments Off on Older Buyers Boost Builders’ Expectations

Recently surveyed builders expressed surging confidence in the market for newly built single-family homes among buyers age 55 and up. According to the results of the latest National Association of Home Builders 55+ Housing Market Index – which measures builders’ confidence on a scale where any number above 50 indicates more builders view conditions as good than poor – confidence in the market for single-family homes increased 20 points year-over-year to a level of 48, the highest fourth-quarter reading since the NAHB began tracking the data in 2008. Robert Karen, chairman of the NAHB’s 50+ Housing Council, said they are seeing continued improvement in the 55+ housing market because consumers have gained confidence in the economy and are able to sell their current homes and move into a new home or condo that fits the lifestyle they desire. Karen expects this optimism from builders and developers to carry through 2014. All individual components of the single-family HMI showed significant improvement, with confidence in present sales levels climbing 26 points from one year ago. More here.

Confidence In Economy Hits Five Year High

February 3, 2014 Housing Market Comments Off on Confidence In Economy Hits Five Year High

Americans grew more confident in the economy in 2013, according to recently released data from Gallup. Though their perception of economic conditions and the future direction of the economy experienced some ups-and-downs throughout the year, Americans were more optimistic than in years past, with gains seen across several key indicators. Gallup’s Job Creation Index, for example, gained two points from its year-before level, while economic confidence rose five points and average daily spending increased to $88, a $16 improvement over 2012. Overall, Americans were more confident in the economy than in the previous five years, which is a positive sign that the economy is recovering from the most recent recession. Still, Gallup warns that it is unclear how strong the economic recovery is due in part to the support its received from the Federal Reserve over the past two years. This year, the Fed will begin winding down some of the economic stimulus that has been keeping interest rates at historic lows and helping boost the economy and housing market. Though this has the potential to drive rates up, the Fed has indicated that it will keep short-term rates low until unemployment drops or inflation becomes a concern. More here.

Builder Confidence Levels Off In January

January 17, 2014 Housing Market Comments Off on Builder Confidence Levels Off In January

After an unexpected spike in December, builder confidence in the market for newly-built, single-family homes fell a point to 56 in January, according to the National Association of Home Builders Housing Market Index. The index – derived from a monthly survey conducted for the past 25 years – scores builders’ perception of the current market on a scale where any number above 50 indicates more builders view conditions as good than poor. Rick Judson, NAHB’s chairman, said January’s results show that confidence is holding at a solid level. According to Judson, the fact that many markets are showing improvement bodes well for future sales of new homes. Still, all three index components suffered declines in January. The index gauging current sales fell one point to 62, while future sales dropped two and buyer traffic slipped three points. Regionally, the three-month moving averages found the Northeast and West both up four points. The South was unchanged at 56 and the Midwest fell a point to 58. NAHB chief economist David Crowe believes rising home prices, historically low mortgage rates, and significant pent-up demand will continue driving the recovery in the year ahead. More here.

Realtor Report Finds Optimistic Outlook

January 7, 2014 Housing Market Comments Off on Realtor Report Finds Optimistic Outlook

According to a monthly survey of Realtors, market conditions are still good, though not as strong as before. The survey – which measures confidence in the current market and expectations for the future – provides monthly information about buyer/seller traffic, price trends, buyer profiles, and issues affecting the real-estate market. Despite little change in overall perception from October to November, Realtor confidence in the market for single-family homes over the next six months jumped four points, rising to 64 from 60 in October. The survey is scored so that any number above 50 indicates moderate market conditions. According to respondents, buyer traffic slowed in late autumn but is expected to pick up now that the holidays are over and the spring-selling season is only a few months away. Also in the report, a seasonal slowdown in home prices combined with steady mortgage rates and rising incomes has lead to a slight boost in affordability, though the overall trend remains down. More here.

Market Momentum Carries Over Into New Year

December 30, 2013 Housing Market Comments Off on Market Momentum Carries Over Into New Year

Consumer confidence has rebounded since October’s government shutdown and should continue to strengthen in 2014 as fiscal and monetary policy issues begin to clear. According to Fannie Mae’s Economic & Strategic Research Group, the improvement should lead to gains in consumer spending, manufacturing activity, and economic growth – all of which will contribute to the housing market’s continued recovery. Doug Duncan, Fannie Mae’s chief economist, said housing will continue on a modest upward trend toward more normal levels in 2014, with additional home price increases tempered by declining investor activity in the market. Duncan said housing indicators met the group’s expectations for 2013 and should continue their gradual march toward normal in the new year. More here.

Builders Optimistic About New Home Sales

December 18, 2013 Housing Market Comments Off on Builders Optimistic About New Home Sales

All three components of the National Association of Home Builders Housing Market Index improved in December. The three index components, which measure current sales conditions, sales expectations, and traffic of prospective buyers, are scored on a scale where any number above 50 indicates more builders view conditions as good than poor. According to the most recent release, the current-sales component jumped six points to 64, while the index measuring expectations for future sales rose two points to 62 and traffic of prospective buyers increased three points to 44. David Crowe, NAHB’s chief economist, said the recent spike in mortgage rates has not deterred consumers, as rates are still near historically low levels. Crowe believes this month’s gain is due, in part, to the release of pent-up demand caused by the uncertainty surrounding October’s government shutdown. Overall, builder confidence in the market for newly built, single-family homes improved four points to a reading of 58. More here.

Confidence In Economy Slowly Returning

December 17, 2013 Housing Market Comments Off on Confidence In Economy Slowly Returning

Following the government shutdown in October, Americans’ confidence in the economy tumbled. But ever since that plunge, confidence has been slowly returning. And according to Gallup’s most recent Economic Confidence Index, Americans’ assessment of current economic conditions has almost completely rebounded to levels last seen in mid-September. On the other hand, the index component measuring future outlook, which took a heavier hit during the shutdown, remains 11 points below mid-September levels – though it has recovered 24 points since its post-shutdown low. Gallup’s report says economic confidence should be more positive than negative next year, as long as home and stock prices keep rising and the job market continues to improve. More here.

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