New home builders are feeling a bit peppy these days as builder confidence rose two points in May for the second straight month, according to a report by The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. This is the first back-to-back increase in builder confidence since February 2008.
The index gauges builder confidence in the market for newly built, single family homes.
CEO Jerry Howard says that the two consecutive months of gains in the index “are encouraging. We hope we are approaching the bottom and market stability is just around the corner.”
But wait. There’s the good news/cautious news scenario. The good news is the worst of the housing market problems may be over, but right now the housing market is improving at turtle speed. So, if you’re a bettor, place your money on the turtle and not the hare.
Sure, we want the economy to turn around, offer housing for qualified homebuyers and emerge from the three-year housing slump in good shape. Past experience has proven that sky rocketing growth with little control has not been favorable for our economy and the housing market.
Slowly but surely the housing market and the economy edge upward, and that’s the sensible way to recovery. We’ll see the beginning of a bounce back in early fall of 2009, but don’t expect to see the housing market equilibrium to stabilize until 2012.
Key to the housing industry is the first time homebuyer, who can take advantage of the $8,000 tax credit. This group of homebuyers is contributing stability and growth to the housing industry. Lending is another issue, but builders and Realtors hope that historic low mortgage rates, qualified buyers and lower purchase prices will encourage lenders to jump into the housing market and make lending available to worthy buyers.
Slow but sure wins the race and that’s the way to go now. There are new and existing real estate opportunities out there for you. The Grant Hickman Team understands the St. Charles market and will help you make the right choice.