Sunday , 25 September 2016
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Home Builder Confidence at a 10-Year High

WASHINGTON – The confidence of the nation’s home builder has risen to its highest point in 10 years, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

Even with the oil slump, things are not dire in Houston.

Houston builder Chris Lemming, land project manager at the Partners in Building firm, said: “Since coming on board at Partners in Building, we’ve seen a steady demand for luxury housing in our existing communities. We’ve also an uptick in new luxury communities coming online, and that bodes well for the future of the luxury market.”

Nationally, the market for newly constructed single-family homes rose three points in October to a level of 64 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This month’s reading is a return to HMI levels seen at the end of the housing boom in late 2005.

“The fact that builder confidence has held in the 60s since June is proof that the single-family housing market is making lasting gains as more serious buyers come forward,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “However, our members continue to tell us there are still pockets of softness in some markets across the nation, and that they face challenges regarding the availability of lots and labor.”

“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. “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.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index 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.”

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