In August builder confidence in the market for newly built, single-family homes rose three points to 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index has been increasing for four consecutive months, and has reached its highest level in almost eight years.
In August builder confidence in the market for newly built, single-family homes rose three points to 59 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index has been increasing for four consecutive months, and has reached its highest level in almost eight years.
To calculate the HMI, the NAHB asks builders to rate sales, expected sales and buyer traffic as good, fair or poor. A number over 50 indicates that more builders view conditions as good than poor.
Builders' perception of current sales conditions rose three points to 62, and the component gauging sales expected in the next six months rose one point to 68. Perception of buyer traffic remained at 45.
"Builders are seeing more motivated buyers walk through their doors than they have in quite some time," said NAHB Chairman Rick Judson in a statement. "What's more, firming home prices and thinning inventories of homes for sale are contributing to an increased sense of urgency among those who are in the market."
NAHB's HMI tables can be found at www.nahb.org/hmi.