This year has seen a lot of positives in the housing industry. Consumer and builder confidence continues to increase, and this past month is just more proof.
According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), builder confidence for new single-family homes increased four points to hit 58. The HMI gauges the overall builder perception of single-family home sales and the expectations of sales for the following six months. The HMI is gauged according to a scale of “good,” “fair” or “poor.” The rate of prospective buyer traffic is also gauged and rated as “high to very high,” “average” or “low to very low.” Anything above 50 suggests builders consider the outlook as more “good” than “poor.”
“Growing confidence among consumers is what’s fueling this optimism among builders,” said NAHB Chairman Kevin Kelly in a recent press release. “Members in many areas of the country continue to see increasing buyer traffic and signed contracts.”
NAHB Chief Economist David Crowe said the builder confidence can also be attributed to the low interest rates, affordable home prices, as well as the strong job creation across the country.
“After a slow start to the year, the HMI has remained above the 50-point benchmark for five consecutive months, and we expect the momentum to continue into 2015,” he added.
Not only was the builder confidence up for November, but also sales conditions (up five points to 62) and the future sales expectations (up two points to 66).The HMI average for the past three months in the South, which includes Texas, has increased four points to 62.