Builders Optimistic About New Home Sales

Home builders have a unique perspective when it comes to gauging whether or not people are buying new homes. Because of this, the National Association of Home Builders’ Housing Market Index – which measures builders’ confidence in the market for newly built, single-family homes – has become an important indicator of the housing market’s health. The Index scores builders’ perceptions on a scale where any number above 50 indicates that more builders view conditions as good than poor. In June, the index posted a four-point gain, reaching a level of 49. Kevin Kelly, NAHB’s chairman, said after several months of little fluctuation, a four-point increase is a welcome sign that builders have some renewed confidence in the market. All three components of the index improved in June, with the component measuring current sales conditions seeing an increase of six points. Components gauging sales expectations for the next six months and buyer traffic both rose three points. Regionally, three-month moving averages show the Midwest falling a point, the West holding steady, and the South and Northeast up a point. More here.

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