Sept. 16 (Bloomberg) — Confidence among U.S. homebuilders rose in September for the third straight month, another sign the industry is past its worst point and is starting to recover.
The National Association of Home Builders/Wells Fargo confidence index climbed to 19, the highest level since May 2008, from 18 in August, the Washington-based group said today. A reading below 50 means most respondents view conditions as poor.
Lower prices and government tax credits for first-time buyers helped home sales steady in recent months, setting the stage for builders to gradually step up construction from record lows. Even so, job losses and tight credit may restrain the market’s turnaround, limiting sales at builders such as D.R. Horton Inc. and Pulte Homes Inc.
“Virtually all the data on housing has taken on a better tone,” Michael Larson, a housing analyst at Weiss Research in Jupiter, Florida, said before the report. “That’s giving builders more reason for optimism. The turn is largely being driven by the fact that housing is a bargain again.”
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