Builder confidence rises in December

Builder confidence is at its highest mark since 1999, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

Builder confidence in the market for newly-built single-family homes increased five points to a level of 74 on the HMI, after a downwardly revised November reading. This level is the highest report in more than 18 years, the NAHB said.

“Housing market conditions are improving partially because of new policies aimed at providing regulatory relief to the business community,” NAHB chairman Granger MacDonald, a home builder and developer from Kerrville, Texas, said in a prepared statement.

“The HMI measure of home buyer traffic rose eight points, showing that demand for housing is on the rise,” said NAHB Chief Economist Robert Dietz. “With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year.”

Looking at the three-month moving averages for regional HMI scores, the Midwest climbed six points to 69, the South rose three points to 72, the West increased two points to 79 and Northeast inched up a single point to 54.