Home Builders Report Best Sales Conditions in Five Years

by devteam December 18th, 2012 | Share

Builders of new single family homesrncontinue to grow more confident about the market for their product according tornthe National Association of Home Builders (NAHB)/Wells Fargo Housing Market survey</afor December.  The Housing Market Indexrn(HMI) derived from the survey rose two points to 47 marking the eighthrnconsecutive monthly gain and the highest level for the index since April 2006.</p

The HPI and its component indices arernbased on responses of NAHB’s home builder members to a series of questions on newrnhome sales activity.  They are asked torngauge the current level of single family home sales and their expectation forrnsales over the next six months each on a scale of “good,”rn”fair” or “poor” and to rate traffic of prospective buyersrnas “high to very high,” “average” or “low to veryrnlow.” </p

Scores from each component are then usedrnto calculate an index and combined into a seasonally adjusted composite (thernHMI).  A number over 50 for the index orrnany of its components indicates that more builders view sales conditions asrngood than poor.  </p

Two of the HMI’s three component indexesrnare now above the critical midpoint of 50. The component gauging current salesrnexpectations rose two points to 51 in December, while the component gaugingrnsales expectations in the next six months slipped one point, to 51. Therncomponent measuring traffic of prospective buyers increased one point, to 36.</p

“Builders across the country arernreporting some of the best sales conditions they’ve seen in more than fivernyears, with more serious buyers coming forward and a shrinking number of vacantrnand foreclosed properties on the market,” observed NAHB Chairman Barry Rutenberg.   “However, one thing that is still holdingrnback potential home sales is the difficulty that many families are encounteringrnin getting qualified for a mortgage due to today’s overly stringent lendingrnstandards.”<br /<br /"While there is still much room for improvement, the consistent upwardrntrend in builder confidence over the past year is indicative of the gradualrnrecovery that has been taking place in housing markets nationwide and that wernexpect to continue in 2013," noted NAHB Chief Economist David Crowe.<br /<br /The increase in confidence was evidenced in three of the four regions with thernfourth, the West, unchanged from November at an index of 47.  The HMI increased three points to 46 in thernSouth, three points to 48 in the Midwest, and four points to 35 in thernNortheast.  The levels in each region arernup a minimum of 100 percent compared to one year earlier

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...