Builder Confidence Rising

Real Estate Outlook: Builder Confidence Rising

More discussion and commentary has filled the air this week, regarding the Federal Reserve`s move to buy up Treasury Bonds. In response to opposition from political arenas, and uneasy bond markets, the President of the Federal Reserve Bank of New York, William C. Dudley, spoke out in a rare interview. Dudley noted, "We have no goal in terms of pushing the dollar up or down. Our goal is to ease financial conditions and to stimulate a stronger economic expansion and more rapid employment growth."

"We`re not trying to push the dollar to any particular level," Dudley told CNBC. "What we`re trying to do through our large scale asset purchase programs is to remove Treasuries from the market, and force private investors into other assets," he said, adding "I don`t think we knew that the dollar was necessarily going to weaken."

Despite troubles brewing over bond market moves, the United States saw retail sales post the biggest gain in seven months.

Helped by strong demand in the automotive sector, the Commerce Department reports that retail sales rose 1.2 percent last month. The Commerce Department is also reporting that business sales rose by the largest amount since July.

On the tails of this news, reports indicate that builder confidence is improved slightly for November, this according to the National Association of Home Builders.

NAHB chairman Bob Jones says, "Though the gains have been incremental, the fact that builder confidence has improved over the past two months is encouraging. Many builders are reporting that while the quantity of buyer traffic through their model homes has not improved dramatically, the quality of that traffic seems to be getting better – meaning that more people appear to be serious about buying in the near future. Builders remain very concerned, however, about the lack of available financing for new-home construction at a time when inventories of completed new homes are quite thin; after all, you can`t sell what you can`t build."

Regionally, builder confidence is up or holding steady in all areas except the Northeast, which saw a slight decline.

And finally today, another piece of positive housing news, with the National Association of Realtors reporting that the grant program, the Housing Opportunity Fund, has presented another $50,000 to 15 local and state Realtor associations. The NAR has been awarding these grants twice a year since 2006. Funds are used to promote and expand affordable housing opportunities in communities across the nation.

NAR President Ron Phipps notes, "Realtors build communities and are working hard to address the crisis in affordable housing opportunities. The Realtor associations that have received Housing Opportunity grants understand that home ownership strengthens communities, and these associations are working to expand more housing opportunities in their local communities."

Name: Carla Hill via RealtyTimes

Date: November 22, 2010

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