As we mentioned in a blog post last December, consumer sentiment had been on the rise when it comes to thinking positively about the course of housing prices in 2012. Additionally, the National Association of Home Builders/Wells Fargo announced Wednesday that home builder optimism has also continued to rise for the fifth month in a row. Builder sentiment index rose to 29 in February, up from 25 in January, and up 15 points since September. An overall improvement in consumer interest has contributed to this positive outlook (sales of previously owned homes increased in December), as well as a rise in home construction at the end of last year. Additionally, the average rate of a 30-year fixed mortgage is below four percent.
Despite this improved sentiment, the industry still needs some time. Sales of new homes aren’t improving, and builders are having to compete with foreclosures which have forced the price of previously owned homes down.
Read more about this on the San Francisco Chronicle.