WASHINGTON, DC—Builder confidence in the market for newly-constructed single-family homes has hit an 18-year high, the National Association of Home Builders said Monday. That's based on a five-point increase in the NAHB/Wells Fargo Housing Market Index to 74, marking the highest level in the index since July 1999.
All three components of the HMI saw gains in December. The component measuring buyer traffic jumped eight points to 58, the index gauging current sales conditions rose four points to 81 and the index for sales expectations in the next six months increased three points to 79.
“The HMI measure of home buyer traffic rose eight points, showing that demand for housing is on the rise,” says Robert Dietz, chief economist with NAHB. “With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year.”
On a regional basis, the Midwest's three-month moving average HMI score climbed six points to 69, the South rose three points to 72, the West increased two points to 79 and the Northeast ticked up a single point to 54. MarketWatch reported Monday that the five-point increase in the overall HMI beat the expectations of economists, who had expected the index to be basically flat from November.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
