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Home Builders Report Higher Sales

On February 17, 2011 By

Homebuilder confidence in the market for newly-built, single family homes appears stable as the spring buying season gets underway.

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Annualized Single-Family Housing Starts dropped 1 percent in January to 413,000 units nationwide, it’s lowest reading almost 2 years. The headlines would have you believe otherwise.

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Homebuilder confidence in the market for newly-built, single family homes appears stable as the spring buying season gets underway.

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Homebuilder confidence held firm for the second straight month this month, according to the National Association of Home Builders. Foot traffic appears to be increasing.

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Homebuilder confidence held firm for the second straight month this month, according to the National Association of Home Builders.

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Current data shows job growth returning, an expanding economy, and rising rates. These three factors tend to boost the housing market.

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Despite an unfavorable HMI reading, home builders might still less willing to “make a deal”; holding out for a better 2011.

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According to the National Association of Home Builders/Wells Fargo Housing Market Index, a combination of shrinking new home inventory plus higher-quality foot traffic is boosting builder optimism.

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It’s a beautiful cycle, until the economic growth creates higher mortgage rates and home prices. As compared to a year ago, the 30 year fixed rate mortgage is lower by 0.75% or $90/month on a $200,000 loan. It has created historically unprecedented levels of home affordability.

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Home builder confidence held firm this month, according to the National Association of Home Builders’ monthly Housing Market Index. September’s reading of 13 equaled a 17-month low.

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