Builder confidence in October for newly constructed single-family houses rose three points since September to a level of 64, reflecting the levels seen in 2005 at the end of the housing boom, according to the National Association of Home Builders Housing Market Index.
In October 2005, builder confidence was at 68—before the bubble burst and levels collapsed to 8 in January of 2009 before starting a slow recovery. Confidence levels rose above 60 for the first time since the recession in June of this year.
"With October's three-point uptick, builder confidence has been holding steady or increasing for five straight months. This upward momentum shows that our industry is strengthening at a gradual but consistent pace," said NAHB Chief Economist David Crowe in a statement. "With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015."
Two of the three components measured by the HMI posted gains in October. Sales expectations in the next six months increased seven points to 75 and current sales conditions increased three points to 70. The component recording buyer traffic remained the same at 47.
All regions of the country saw increases in the HMI three-month moving averages. The West rose five points to 69. The Northeast, Midwest and South each posted gains of one point, resulting in levels of 47, 60 and 65, respectively.
