Confidence among builders in the single-family home market rose four points during December, according to the latest Wells Fargo-NAHB survey.
Gains in all three components – current sales conditions, sales expectations and prospective-buyer traffic – led to the National Association of Home Builders/Wells Fargo Housing Market Index survey to rise to 58 on a 100-point scale.
It was good news, said NAHB President Rick Judson, a home builder from Charlotte, N.C.
"This is definitely an encouraging sign as we move into 2014," Judson said. "The HMI is up 11 points since December of 2012 and has been above 50 for the past seven months. This indicates that an increasing number of builders have a positive view on where the industry is going."
NAHB Chief Economist David Crowe said market conditions continue to favor the real estate market.
"The recent spike in mortgage interest rates has not deterred consumers as rates are still near historically low levels," Crowe said. "Following a two-month pause in the index, this uptick is due in part to release of the pent-up demand caused by the uncertainty generated by the October government shutdown. We continue to look for a gradual improvement in the housing recovery in the year ahead."
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