Home builder confidence rose in January

Builder confidence in the market for single-family homes rose four points in January to 35, according to the National Association of Home Builders/Wells Fargo Housing Market Index released last week. The increase came after a year of monthly declines in confidence, the association said.

Current sales conditions increased four points to 40, sales expectations in the next six months rose two points to 37 and traffic of prospective buyers increased three points to 23.

“It appears the low point for builder sentiment in this cycle was registered in December, even as many builders continue to use a variety of incentives, including price reductions, to bolster sales,” said NAHB Chairman Jerry Konter. “The rise in builder sentiment also means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023.”

Editor’s note: A previous version of this story incorrectly stated that builder confidence had fallen.