Home builders have been hampered recently, due to lack of labor, land and supplies. As demand finally comes back to the housing market, many builders have had trouble meeting it; others have slowed production intentionally to take advantage of rising prices. Builder confidence has been rising pretty steadily throughout the past year, but until now had not passed into the positive.
(Read More: As Prices Rise, Banks Repossess More Homes)
All three components of the NAHB index were up substantially, but the index measuring buyer traffic, while up seven points, was still in negative territory at 40. The index gauging current sales conditions rose eight points to 56, and expectations for future sales rose nine points to 61.
Sentiment was also not consistent nationwide. Builders moved further into the positive in the Northeast, Midwest, and South, but confidence slipped in the West, according to a three-month moving average. The number of listings in the West has actually been rising lately, as banks speed up the foreclosure process and release more repossessed homes onto the market. Prices have also been jumping dramatically in markets such as Phoenix, Las Vegas and much of California, slowing sales of existing homes.
Article source: http://www.cnbc.com/id/100820613