May 27, 2018

Builder Confidence Rises Across the U.S.

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Builder Confidence Rises Across the U.S.

Builder confidence in the market for new, single-family homes rose two points in August, bringing the National Association of Home Builders/Wells Fargo Housing Market Index to its highest score since the beginning of 2014.

Check out last month's builder outlook.

NAHB surveys builders across the country and asks them to rate their sales expectations for the next six months, their confidence in current single-family home sales, and their perceptions of prospective buyer traffic.

“Each of the three components of the HMI registered consecutive gains for the past three months, which is a positive sign that builder confidence appears to be firming,” NAHB chief economist David Crowe said in a statement.

Builder confidence in current sales conditions rose to a score of 58, while expectations for future sales rose to 65. The third index, which gauges expectations for prospective buyer traffic, hit 42.

Scores rose regionally, as well, with the Midwest experiencing the biggest point increase from 48 to 55. The Northeast’s score, which is the lowest in the country, rose from 36 to 38. The HMI score in the South rose by just one point to 52, while the West’s score went up to 56.

The overall increase in the HMI index can be attributed to factors including sustained job growth, historically low mortgage rates, and affordable home prices, Crowe said.

Source: NAHB