Builder confidence rose as the December figures reflected a significant rebound from uncertainty induced by the deficit debate in October and November, according to the December NAHB/Wells Fargo Housing Market Index. The December index is 37 points above the December 2011 level. Current home sales rose 6 points, expected sales increased, and traffic increased 3 points; all of which buoy builder confidence as market competition from foreclosures and short sales taper off. Builders note that buyers are jumping into the market now to take advantage of lower prices before purchase increases take effect. The resurgence of builder confidence is corroborated by the Census and HUD reports regarding new home sales in October and housing permit reports.
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