WASHINGTON—Improvement was seen in all three index components –current sales conditions, sales expectations and traffic of prospective buyers –of the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December. Builder confidence in the market for newly built, single-family homes improved four points to a 58 reading, as well.
Scores over 50 indicate that more builders taking the monthly survey from NAHB view conditions as good than poor. The index gauging current sales conditions jumped six points to 64, while index gauging expectations for future sales rose two points to 62. The index gauging traffic of prospective buyers gained three points to 44.
“This is definitely an encouraging sign as we move into 2014,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “The HMI is up 11 points since December of 2012 and has been above 50 for the past seven months. This indicates that an increasing number of builders have a positive view on where the industry is going.”
More information about December’s HMI results and the NAHB can be found here.