A gauge of confidence among home builders rose in December to the highest level since April 2006, with respondents encouraged by declining inventory and good sales conditions, according to the National Association of Home Builders/Wells Fargo Housing Market Index released Tuesday
The index rose two points to a seasonally adjusted level of 47 - matching estimates from analysts polled by MarketWatch - from a downwardly revised 45 in November
A prior estimate for November pegged the level at 46
Despite eight months of gains, the confidence gauge remains below the key reading of 50
Readings over 50 indicate that more builders see sales conditions as good than poor
While confidence readings have more than doubled over the past 12 months, new construction is below levels historically associated with current levels of sentiment among builders
