Though down slightly from the month before, the National Association of Home Builders Housing Market Index remained at a high level in December. The Index – which measures builders’ perception of the market for newly built single-family homes – is scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In December, the Index dropped one point to 61. David Crowe, NAHB’s chief economist, said the results are an indication that the residential real estate market will continue to make progress in the year ahead. “For the past seven months, builder confidence levels have averaged in the low 60s, which is in line with a gradual, consistent recovery,” Crowe said. “With job creation, economic growth, and growing household formations, we anticipate the housing market to continue to pick up traction as we head into 2016.” Each of the three individual index components suffered minor losses, including a two point decline in both the gauge of expectations for the next six months and buyer traffic. The component measuring current sales conditions fell just one point. The NAHB has been conducting the monthly survey for the past 30 years. More here.
