Builder confidence holds steady

Builder confidence in the market for newly-built single-family homes remained at 60 in January from a downwardly revised December reading of 60 on the National Association of Home Builders/Wells Fargo Housing Market Index.

“After eight months hovering in the low 60s, builder sentiment is reflecting that many markets continue to show a gradual improvement, which should bode well for future home sales in the year ahead,” said NAHB chairman Tom Woods, a home builder from Blue Springs, Mo.

The HMI component gauging current sales condition rose two points to 67 in January. The index measuring sales expectations in the next six months fell three points to 63, and the component measuring buyer traffic fell two points to 44.

Looking at the three-month moving averages for regional HMI scores, the Northeast, Midwest and West each posted a one-point decline to 49, 57 and 75, respectively, while the South fell two points to 61.

“January’s HMI reading is right in line with our forecast of modest growth for housing,” said NAHB chief economist David Crowe. “The economic outlook remains promising, as consumers regain confidence and home values increase, which will help the housing market move forward.”