Sales of new houses rose in November to the highest level in more than two years.
Low mortgage rates and dwindling foreclosures are stabilizing prices and attracting buyers more than three years after a recession that was fueled by the industry’s collapse.
Growing demand coupled with less inventory has given a boost to builders such as Toll Brothers Inc.
“The housing market’s in a steady recovery that’s likely to continue,” said Renaissance Macro’s Dutta. “We’re probably in the early stages of this positive feedback loop” of cheap credit, tight inventory and rising prices, he said.
Builder confidence has been improving as well. The National Association of Home Builders/Wells Fargo builder sentiment index increased in November to the highest level since April 2006.