Remodeler confidence up despite homebuilder stock dip

The housing sector is going strong - it is all facets of the market that are contributing to rising values and prices, and an overall uptick in sales - and homebuilders aren't excluded.

The housing sector is going strong - it is all facets of the market that are contributing to rising values and prices, and an overall uptick in sales - and homebuilders aren't excluded.

Remodeler confidence has increased for the second quarter of 2013, according to the National Association of Home Builders. The Remodeling Market Index increased six points to 55, five ticks higher than the median between positive and negative opinions. 

Overall, the index combines current real estate records with a projected view of any future remodels, and the industry appears to be headed in the right direction.

"Remodelers are feeling optimistic about the home improvement market during what has turned out to be an uneven recovery," said Bill Shaw, remodelers chairman of NAHB. "The RMI future market results are especially promising. Not only do remodelers have projects booked for the next few months, but they also have more work coming in the door."

David Crowe, chief economist of NAHB, added that demand has contributed to the positive sentiments, and an increase in home prices are helping more homeowners remodel, while existing home sales also factor in - renovations are common among homes about to get listed.

A general sense of safety and soundness around the financial stability of the housing market has provided a lift for most segments.

Even as the NAHB reports gains, homebuilder stock from several major players has taken a dip recently, according to InvestorPlace.

The reason has less to do with bad revenue - home sales are up - but with too much of a good thing. The strong numbers and recent revitalization have raised expectations for stocks, and while some companies posted earnings, anything lower than forecasted is being investigated by investors and traders alike, the source added. 

Missing projections is cause for stocks to be sold, resulting in the lack of performance. The housing market as a whole has been doing well, and the strong signs in 2013 should remain throughout the year.



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