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Home Sales Holding Steady As Builder Confidence Adjusts

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Home Sales Holding Steady As Builder Confidence Adjusts

The latest NAHB/Wells Fargo Housing Market Index (HMI) may have fallen five points in October to 54, according to a new report from the National Association of Home Builders, but home sales and starts are still holding steady. Readings over 50 on the HMI mean more builders think favorably of current market conditions than not. The decrease seen in October comes after a nine-year high of 59 in August, returning values to readings last seen in June.

Market conditions continue to vary across local and regional markets, most notably in the oil and energy belt, where the recovery has been very strong. In other areas, builders are reporting shortages of buildable lots as well as concerns about the lack of skilled labor.

Overall, the number of total housing starts increased to just above 1 million for the third time in 2014. Single-family starts increased slightly, securing a third quarter average of 646,000. This reflects a 3.4 percent rise over Q2. Regionally speaking, single-family starts were up in the Midwest and West, with smaller decreases in the Northeast and South.

Read the full article from NAHB here.

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