According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), September marks the highest level for builder confidence for newly built, single-family homes since June of 2006. This is yet another signal pointing to a stronger housing market!
The Housing Market Index (HMI) has been slowly inching upward over the last few months and actually rose three more points in September, resulting in consecutive gains over the last five months, and an HMI of 40.
According to the builders surveyed (based on 445 respondents), buyer confidence, current sales conditions, prospective sales prospects, and prospective buyers all saw an increase this month, indicating that buyers are interested in looking at new homes throughout the United States. A nine point increase was noted in the Northeast, while the Midwest and South each illustrated a four point gain. A five point gain was seen in the West.
Were you one of those prospective new home buyers?
If you’d like to learn more about new homes or existing homes in the area, give me a call and I can show you what is currently available and what you can expect to see in the near future. With home building confidence on the rise, your home buying options increase and you may be surprised at what you discover.
While the increase indicates a swing towards recovery and more demand for housing, more improvement is needed to create jobs, secure materials, lots, and needed credit to get projects started.
“Builders across the country are expressing a more positive outlook on current sales conditions, future sales prospects and the amount of consumer traffic they are seeing through model homes than they have in more than five years,” noted National Association of Home Builders (NAHB) Chief Economist David Crowe. “However, against the improving demand for new homes, concerns are now rising about the lack of building lots in certain markets and the rising cost of building materials. Given the fragile nature of the housing and economic recovery, these are significant red flags.”
To view the actual HMI tables and other related statistics, click here.