Builder Confidence Hits Post-Housing Boom High
The NAHB reports that builder confidence for the newly constructed single-family home market hit 64 - a return to Housing Market Index (HMI) levels unseen since the housing boom ended in late 2005. The index rose three points in October, the association said in a news release.
You can find the full news releasee on the National Association of Home Builders/Wells Fargo HMI here.
Builder confidence has held in the 60s since June, pointed out NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “However, our members continue to tell us there are still pockets of softness in some markets across the nation, and that they face challenges regarding the availability of lots and labor.”
The gain in October means confidence levels have held steady or increased for the past five months. "This upward momentum shows that our industry is strengthening at a gradual but consistent pace,” said NAHB Chief Economist David Crowe. “With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015.”
The HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months and asks builders to rate traffic of prospective buyers.
Two of the three HMI components posted gains in October. The index measuring sales expectations in the next six months rose seven points to 75, the component gauging current sales conditions increased three points to 70 and the index charting buyer traffic held steady at 47.
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