New Home Market Has Builders Optimistic

A new survey of home builders finds confidence in the new home market high, despite being relatively unchanged from the month before. The National Association of Home Builders Housing Market Index measures builders’ confidence on a scale where any number above 50 indicates that more builders view conditions as good than poor. In January, the Index declined one point to 57, after December’s reading was revised upward from 57 to 58. David Crowe, NAHB’s chief economist, said January’s reading is in line with the organization’s forecast heading into the new year. “Steady economic growth, rising consumer confidence and a growing labor market will help the housing market continue to move forward in 2015,” Crowe said. Among the index’s three components, those measuring expectations for future new home sales and traffic of prospective buyers both fell, while the component gauging current conditions was unchanged. Regionally, the West, Midwest, and Northeast all saw gains from the month before, while the South slipped two points. More here.

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