Just as we hear that previously occupied home sales hit their second-highest level in three years, we also hear that the Federal Reserve is having second thoughts on its latest round of quantitative easing, also known as QE3.
U.S. homebuilders began work at a slower pace in January, though the level was still the third-highest since 2008. The pace of building was viewed as a sign of further strengthening in residential real estate.
Lawmakers of both parties are hunting for ways to raise tax revenue as part of a deal to avert the fiscal cliff. But they should stay away from touching the mortgage interest tax deduction, warns the U.S. housing industry, lest they throw a wrench the long-sputtering economic recovery.
Confidence among U.S. homebuilders remains at its highest level in six years, reflecting improved optimism over the strengthening housing market this year and a pickup in visits by prospective buyers to builders' communities.
Toll Brothers' net income rose 46 percent in the third quarter as it delivered more homes at higher prices. It also had lower write-downs during the period.
Americans bought new homes in May at the fastest pace in more than two years. The 7.6% increase suggests a modest recovery in the housing market is continuing, despite weaker job growth.
Sales of U.S. new homes fell in February for the second straight month, a reminder that the depressed housing market remains weak despite some improvement. But the Commerce Department also reported some positive signs.
U.S. homebuilders are growing less pessimistic about the housing market, despite tighter lending standards that have slowed home sales. The National Association of Home Builders/Wells Fargo builder sentiment index rose four points to 25 in January. That's the highest level since June 2007. It's just the third time the index has been at 20 or above in two years.
A surge in apartment construction gave builders more work in November, but 2011 is still shaping up to be one of the worst years in history for homebuilders.
New forecasts show that the worst may be over for the construction industry, which was hit harder by the Great Recession than any other sector, as construction projects slowly resume. Some 27% of construction firms say they plan to add staff this year, while only 20% plan to cut jobs.
Technically, the homebuilder sentiment index inched one point higher to 16 in November. But the gain was offset by a revised one-point dip in October's reading, and the numbers remain well below those seen during a healthy housing market.
The U.S. housing sector took another hit this month as homebuilder sentiment unexpectedly fell to 13 in August from 14 in July. The measure has been drifting lower since the federal homebuyers tax credit expired this spring.
