[1]Homebuilders' confidence in the market for newly constructed single-family homes rose in October, returning to a level not seen since the end of the housing boom in 2005.
According to the National Association of Home Builders [2](NAHB)/Wells Fargo Housing Market Index [3](HMI), builder confidence in this market increased three points to 64 in October.
NAHB Chairman and a home builder from Blue Springs, Missouri Tom Woods noted that the single-family housing market is "making lasting gains as more serious buyers come forward" as builder confidence has floated above the 60s since June.
Woods added, “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 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."
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.” Any number over 50 indicates that more builders view conditions as good than poor.
In October, the NAHB reported that two of the three HMI components posted gains.
The component that measures sales expectations in the next six months increased seven points to 75, and the component that measures current sales conditions rose three points to 70. The buyer traffic index remained the same at 47 in October.
All four regions posted gains in October in terms of three-month moving averages for regional HMI scores, the report explained. The Western region increased five points to 69. The Northeast, Midwest, and South all rose one point to 47, 60, and 65, respectively.
“With October’s three-point uptick, builder confidence has been holding steady or increasing for five straight months, " said David Crowe, NAHB chief economist. "This upward momentum shows that our industry is strengthening at a gradual but consistent pace. 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."
Click here [3] to view the full report.