Monday, November 18, 2013

Homebuilders' outlook steady, report says | Katonah NY Homes

U.S. homebuilder confidence stabilized in November after falling for two months.

The National Association of Home Builders/Wells Fargo Housing Market Index came in at 54 in November. The October figure was revised down to 54 from the originally reported 55.

Economists polled by Reuters had predicted a November reading of 55.

Steady home demand was tempered by worries about further fiscal battles in Washington, the association said on Monday.

“Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax and government spending issues down the road,” the Washington-based industry group's chairman Rick Judson said in a statement.

Home builder sentiment was also pressured by rising construction costs and low appraisals, Judson said.

Still, the index has held above 50 for a sixth straight month. Readings below 50 mean more builders view market conditions as poor than favorable.

“The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline,” NAHB Chief Economist David Crowe said in the same statement from the group.

http://www.chicagotribune.com/business/breaking/chi-homebuilders-outlook-steady-report-says-20131118,0,5382934.story

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