A monthly survey of the nation’s home builders shows that confidence continues to rise in the newly-built, single-family home market. The National Association of Homebuilders’ Housing Market Index rose by one point to 61 – the highest score since November 2005.
By comparison, last year’s level stood at 55, and any score over 50 is considered positive.
According to the Association’s chief economist David Crowe, this month’s survey supports the NAHB’s forecast for gradual strengthening in the 2015 single-family housing market.
The Housing Market Index (HMI) is made up of three components – detailed here with their latest scores:
- Buyer Traffic: 45 (+2 points)
- Current Sales Conditions: 66 (+1 point)
- Sales Expectations: 70 (steady)
Regionally, the West and the Midwest both posted the highest monthly gains, up 3 points each. The South posted a 2 point gain, while the Northeast held steady.
NAHB Chairman Tom Woods says the fact that builder confidence has been in the 60’s for the past three months shows slow but steady progress, despite the fact that builders continue to face some difficulties in accessing both land and labor.
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