Ten Year High In New Home Builder Confidence

Posted by John Sabia on Monday, September 21st, 2015 at 9:57am.

When looking forward into coming months forecasting the strength of the new housing real estate market, home builders and developers typically have a good pulse on that market and therefore, their insight is solicited monthly by the National Association Of Home Builders.

This study has been conducted for 30 years and surveys buildings and developers what they are seeing in the market place and asks their input on rating traffic from potential buyers looking at homes for sale and condos for sale, current sales conditions, and their expectations over the coming six months. The NAHB’s Housing Market Index rose another point in September and reached a pinnacle level not hit since October 2005.

The index which is measured on a scale where any result over 50 indicates a plurality of buildings and developers view conditions as favorable, rose to 62 for the month. NAHB’s chief economist David Crowe said he believes the study findings show the new home housing market should continue to improve throughout the rest of the year. He was quoted as saying, “NAHB is projecting about 1.1 million total housing starts this year. Today's report is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year.”

In addition, Crowe said, “Of the three components, those measuring buyer traffic and current sales conditions each moved up slightly, while the index gauging expectations for the next six months dropped two points. Read more here..

photo of new construction building

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John Sabia

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