Builder confidence rises for the third consecutive month

Builder confidence in the market for newly built, single-family homes edged up two points on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December.

This marks a third consecutive month in which builder confidence has improved and brings the index to its highest point since May of 2010. The move also is the first time the index has improved for three consecutive months since mid-2009.

“While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets,” said Bob Nielsen, chairman of the National Association of Home Builders (NAHB).

“However, the difficulties that both builders and buyers continue to experience in accessing credit for new homes are holding back potential sales even in areas where economic conditions are improving.”