Builders Confident In Market For New Homes

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Builders have an unique perspective on the market for newly built, single-family homes. Because of this, the National Association of Home Builders surveys them monthly in order to gauge their feelings about how the market is doing. The NAHB’s Housing Market Index measures builders’ responses on a scale where any number above 50 indicates more builders view conditions as good than poor. In August, the index rose one point to a level of 61. It was the highest reading since November 2005. David Crowe, NAHB’s chief economist, says the report is in line with the group’s forecast for the year. “Today’s report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015,” Crowe said. “Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year.” Of the index’s three individual components, two improved over last month. The index measuring buyer traffic was up two points to 45, while the component gauging current sales conditions rose one point to 66. Sales expectations for the next six months remained high but unchanged from the month before at 70. More here.

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