construction jobs

Home builder confidence makes seventh consecutive monthly gain

November 19, 2012
731 Views

Builders’ optimism is improving, but…

According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for November, builder confidence in the market for newly built, single-family homes posted a solid, five-point gain to 46, marking the seventh consecutive monthly gain in the confidence gauge and brings it to its highest point since May of 2006. While the gains are a very positive sign for the hardest hit sector of housing, it should be noted that any reading under 50 means less than half of all builders surveyed feel optimistic about conditions.

“While our confidence gauge has yet to breach the 50 mark — at which point an equal number of builders view sales conditions as good versus poor — we have certainly made substantial progress since this time last year, when the HMI stood at 19,” observed NAHB Chief Economist, Dr. David Crowe. “At this point, difficult appraisals and tight lending conditions for builders and buyers remain limiting factors for the burgeoning housing recovery, along with shortages of buildable lots that have begun popping up in certain markets.”

Two out of three of the HMI’s component indexes registered gains in November – sentiment regarding current sales conditions rose 8.0 points to 29.0, its highest mark in over six years, while the component measuring sales expectations for the next six months held above 50 for a third consecutive month with a two-point gain to 53. Meanwhile, the component measuring traffic of prospective buyers held unchanged at 35 following a five-point gain in the previous month.

All four regions of the country posted gains in their HMI three-month moving averages as of November. The South posted a four-point gain to 43, while the Midwest and West each posted three-point gains, to 45 and 47, respectively, and the Northeast posted a two-point gain to 31. The NAHB notes that the HMI survey was conducted in the two weeks immediately following Hurricane Sandy and therefore does reflect builder sentiment during that period.

Advertise with The American Genius

bank of america mobile payments
Mobile payments on the rise Square has been all over the news lately, most recently with the announcement that the system is now live at more than 7,000 Starbuck’s locations, and many business owners use it to process sales on the go, swiping cards via a reader attached to a…
president pena
Mexico's new President means global changes 2012 has been quite a year for international politics. The US, China and Mexico have all welcomed new leaders. Mexico’s new leader, President Enrique Peña Nieto was the former governor of the 15 million residents in the state of Mexico. He is dedicated to…

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Leave A Comment