Builder confidence in the market for newly built single-family homes went up four points to a level of 58 on the National Association of Home Builders Housing Market Index in November.
Builder confidence in the market for newly built single-family homes went up four points to a level of 58 on the National Association of Home Builders Housing Market Index in November.
This is the fifth consecutive month the HMI, which averages sales conditions, future sales and prospective buyer indexes, is higher than 50. The level 50 means more than half of all builders are confident in the housing market.
"Growing confidence among consumers is what's fueling this optimism among builders," said NAHB Chairman Kevin Kelly in a statement. "Members in many areas of the country continue to see increasing buyer traffic and signed contracts."
Indeed, statistics released today by the U.S. Census Bureau show October housing starts and permits have both seen an increase year-over-year.
Privately-owned housing starts in October were at a seasonally adjusted annual rate of 1,009,000. While this is 2.8 percent below the September rate of 1,038,000, it is 7.8 percent higher than the October 2013 rate of 936,000.
Of that, single-family starts between October and September increased 4.6 percent to 689,000 units. The multifamily sector brought the overall production totals down. Total multifamily starts declined 15.4 percent to 313,000 in October.
"The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing," Kelly said. "We expect continued upward momentum into next year."
Privately-owned housing building permits in October were at a seasonally adjusted annual rate of 1,080,000, or 4.8 percent higher than September's 1,031,000 and 1.2 percent above October 2013's rate of 1,067,000.