Monday, December 18, 2006

Homebuilders Confidence May be Stabilizing

U.S. home builders were a bit more pessimistic about the housing market in December, but they're growing more hopeful that home sales could perk up in six months, the National Association of Home Builders reported Monday.

The NAHB/Wells Fargo seasonally adjusted housing market index fell to 32 in December from 33 in November. About a third of builders view the market as favorable. The index has been roughly flat for the past five months, hovering in a range between 30 and 33. Read the full report.

Before we throw a party, remember the index is still at multi-year lows, indicating the bearish sentiment is very strong. In addition, inventory levels are still very high and the consumer is still deeply mired in debt.