Homebuilder Confidence Improves

Earlier this week I read this article on CNBC:

Not since the spring of 2008 have the nation’s homebuilders felt this good about the potential for new business. An industry association survey measuring builder sentiment rose for the third straight month in December, with significant gains in the component measuring traffic of perspective buyers.

The National Association of Home Builders/Wells Fargo Housing Market Index edged up two points from a downwardly revised number to 21.

“This is the first time that builder confidence has improved for three consecutive months since mid-2009, which signifies a legitimate though slowly emerging upward trend,” said National Association of Home Builders Chief Economist David Crowe. “While large inventories of foreclosed properties continue to plague the most distressed markets and consumer worries about job security and the challenges of selling an existing home remain significant factors, builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”

Difficulty in obtaining credit, however, is still a major hurdle to recovery for the beleaguered builders, whose sales are running at half the rate they were during the recent housing boom. Industry analysts say there is considerable pent-up demand for new homes, given how many Americans have either moved in with family or chosen to rent in the wake of the housing crash, but that demand is still on the sidelines.

Potential buyers are suffering from a deep lack of confidence not just in housing but in the overall economy and job market; tighter mortgage underwriting standards are also holding much of the market back.

Builder confidence gained the most strength in the South and slipped slightly in the Northeast. Out West, where much of the overbuilding took place during the last decade, sentiment is still improving, but a significant share of smaller builders have gone out of business.

That has opened the door for big builders, like Miami-based Lennar, to expand. Lennar [LEN 19.60 -0.38 (-1.9%)] announced it acquired control of approximately 650 finished home sites in 20 communities in the Pacific Northwest for an undisclosed price from Seattle-based Premier Communities. This is the first entry into a new market by Lennar in almost two years.

Coast Sotheby's International Realty is now HÔM Sotheby's International Realty

Coast Sotheby’s International Realty is now HÔM Sotheby’s International Realty, California’s preeminent luxury real estate company. Our brokers will continue to provide you with the experience and results on which they have built their careers. Through this acquisition, their enhanced resources enable them to provide a level of service and exposure unmatched in the Southern California real estate marketplace.

HÔM Real Estate Group, headquartered in Newport Beach, Calif., has joined its luxury real estate network with Sotheby's Inernational Realty. The firm now will operate its three offices in Newport Beach, Laguna Beach and Balboa Island as HÔM Sotheby’s International Realty with Mike Shapiro as chairman and Bob Bonanno as president. Also, the offices formerly operated by Coast Sotheby’s International Realty in Rancho Santa Fe and Laguna Beach are now being operated as HÔM Sotheby’s International Realty.

The Sotheby’s International Realty network currently has more than 12,000 sales associates located in approximately 580 offices in 42 countries and territories worldwide. HÔM Sotheby’s International Realty listings will be marketed on the sothebysrealty.com global website. In addition to the referral opportunities and widened exposure generated from this source, the firm’s brokers and clients will benefit from an association with the Sotheby’s auction house and worldwide Sotheby’s International Realty marketing programs.

About Sotheby’s International Realty Affiliates LLC
Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Realogy Corporation, a global provider of real estate and relocation services, entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system by Realogy’s subsidiary, Sotheby’s International Realty Affiliates LLC. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744. For more information, visit www.sothebysrealty.com.