ShareEach day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses the Home Builders' Housing Market Index.
- Home builders are frowning less. At least that is what the latest survey results are suggesting. The index of housing market conditions in December was 21, the highest reading in more than 18 months. The index had been in the teens throughout this year and was as low as 13 in June.
- However, the survey was constructed such that a reading of 50 would be considered neutral. Positive conditions occur if the reading is above 50 and less positive if below 50.
- During the boom years of 2003 to 2005, the reading was in the mid-60s. In the past four years, it had been mostly under 20.
- Buyer traffic and single-family sales of newly constructed homes both recorded a slight improvement. Builders also felt better about the outlook over the next 6 months. The Midwest and South regions saw bigger gains compared to the Northeast and West regions.
- The new home sales market comprises less than 10 percent of the overall home sales market. Existing home sales make up more than 90 percent and the health of that market will be reported on this Wednesday by NAR.