Builder Confidence Hits Four-Year High

The feeling inside the convention center at this year’s International Builders’ Show, held last week in Orlando, Fla., was noticeably more hopeful than what the show has seen for several years—a mix of cautious optimism and relief. And show attendees weren’t the only ones, according to the latest report from the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index, released today. Confidence among builders of single-family homes was up for the fifth consecutive month in February, jumping four points to a monthly reading of 29—the highest level seen and longest period of sustained growth since May 2007. But while the gain is significant, the index is still low: Any reading less than 50 indicates that more builders consider conditions to be "poor" rather than "good." "The significant increase is coming off a small base," wrote David Goldberg, a home builder analyst at UBS, in a statement today. "We believe this reflects our view that a gradual improvement in housing is starting to unfold rather than a robust recovery."

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