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NAHB Cites Highest Builder Confidence Levels Since September 2014
According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released June 15, the builder confidence in the market for new, single-family home construction hit a new 2015 high of 59 points. This is a five-point increase from the May confidence level.
The NAHB/Wells Fargo HMI measures builder perceptions of single-family home sales and expectations for the next six months on a scale of “good,” “fair” or “poor.” Builders also rank the prospective buyer traffic as “high to very high,” “average” or “low to very low.” These components, along with current sales conditions, are paired with seasonally adjusted indices to gauge an overall builder confidence level. Levels over 50 indicate builders view conditions as good rather than poor.
“The HMI indices measuring current and future sales expectations are at their highest levels since the last quarter of 2005, indicating a growing optimism among builders that housing will continue to strengthen in the months ahead,” said NAHB Chief Economist David Crowe, per the NAHB June 15 release. “At the same time, builders remain sensitive to consumers’ ability to buy a new home.”
For the full release, visit the NAHB site.
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