Builder confidence rises in October
Builder confidence in the market for newly-built single-family homes rose three points to 71 in October, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI)
The NAHB also said that sentiment levels are at their highest point since February 2018.
“The housing rebound that began in the spring continues, supported by low mortgage rates, solid job growth and a reduction in new home inventory,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn.
The HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
The index gauging current sales conditions increased 3 points to 78, the component measuring sales expectations in the next six months rose 6 points to 76 and the measure charting traffic of prospective buyers was up 4 points to 54.
“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months,” said NAHB Chief Economist Robert Dietz. “However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy.”
Looking at the three-month moving averages for regional HMI scores, the Northeast posted a 1-point gain to 60, the Midwest was up a single point to 58, the South registered a 3-point increase to 73 and the West was also up 3 points to 78.
The NAHB also said that sentiment levels are at their highest point since February 2018.
“The housing rebound that began in the spring continues, supported by low mortgage rates, solid job growth and a reduction in new home inventory,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn.
The HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
The index gauging current sales conditions increased 3 points to 78, the component measuring sales expectations in the next six months rose 6 points to 76 and the measure charting traffic of prospective buyers was up 4 points to 54.
“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months,” said NAHB Chief Economist Robert Dietz. “However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy.”
Looking at the three-month moving averages for regional HMI scores, the Northeast posted a 1-point gain to 60, the Midwest was up a single point to 58, the South registered a 3-point increase to 73 and the West was also up 3 points to 78.