The market for newly built single-family homes is an important barometer of the housing market’s health overall. Because of this, the National Association of Home Builders surveys builders each month and asks for their perception of current sales conditions, buyer traffic, and expectations for the next six months. The Index is measured on a scale where any number above 50 indicates more builders view conditions as good than poor. In November, it fell three points to 62. But despite the month-over-month decline, the Index has now been above 60 for six consecutive months and, according to NAHB’s chief economist, David Crowe, the real estate market is headed for continued improvement. “The November report is pullback from an unusually high October, and is more in line with the consistent, modest growth that we have seen throughout the year,” Crowe said. “A firming economy, continued job creation, and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016.” Regionally, three-month moving averages show all four regions in positive territory. The West increased four points to 70, while the Northeast reached 50 after a three point gain. The Midwest and South were unchanged at 60 and 65, respectively. More here.
