The National Association of Home Builders’ Housing Market Index is a measure of how confident builders are in the market for newly built single-family homes. Conducted for the past 30 years, the survey is an important indicator for residential real estate due to the fact that more new homes being built is good – not only for the broader economy – but also for the entire housing market, as it helps moderate home-price increases in markets where for-sale inventory is low. According to the most recent results, builder confidence held steady in January from the month before, registering a reading of 60. The index is scored so that any number above 50 indicates more builders view conditions as good than poor. David Crowe, NAHB’s chief economist, said the results are in line with the group’s forecast for the year. “January’s HMI reading is right in line with our forecast of modest growth for housing,” Crowe said. “The economic outlook remains promising, as consumers regain confidence and home values increase, which will help the housing market move forward.” Also in the release, the gauge measuring current sales conditions led all index components, rising two points to 67. More here.
