Homebuilder confidence inched higher in February, according to the National Association of Home Builders by 4 points to 62. 
The report, which is the Housing Market Index (HMI), reflects builder confidence in the market for newly-built single-family homes.
The reason given for the bump in confidence was based on “reduction in mortgage rates in recent weeks coupled with continued strength in the job market.” Additionally, what continues to fuel new construction is the ongoing scarcity of available homes for sale, which in most markets has not improved significantly.
According to NAHB Chairman Randy Noel, a custom home builder from LaPlace, La., “In the aftermath of the fall slowdown, many builders are reporting positive expectations for the spring selling season.”
The jump on the six-month sales expectation for the HMI is due to a reduction in mortgage interest rates (falling from 5% to just 4.4%)
But the housing market continues to face a number of very real hurdles when it comes to continued growth:
■ Affordability remains problematic
■ Rising costs from excessive regulations
■ A shortage of buildable lots
■ Ongoing skilled labor shortages in most markets
■ Tariffs on lumber and other building materials
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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