Home builders are more confident in the market for new construction of single-family homes. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) was released today showing a 65 point jump in September from a downwardly revised August reading of 59 which was the highest HMI level since October 2015.
All three HMI components moved higher in September. Builder new home sales expectations were up six points to 71 and sales expectations over the next six months had risen five points to 71. The index measuring buyer traffic was higher by four points to 48.
Three of the four regions of the nation had seen gains averaging over a three moth period. The Northeast and South were up by one-point to 42 and 64, and the West was four points higher to 73. The Midwest was the same at 55.
NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill had said:
“As household incomes rise, builders in many markets across the nation are reporting they are seeing more serious buyers, a positive sign that the housing market continues to move forward. The single-family market continues to make gradual gains and we expect this upward momentum will build throughout the remainder of the year and into 2017.”
NAHB Chief Economist Robert Dietz said:
“With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them. Though solid job creation and low interest rates are also fueling demand, builders continue to be hampered by supply-side constraints that include shortages of labor and lots.”