Homebuilders Remain Upbeat About Market
Housing Market Index Holds Steady at 60
Builders are optimistic about the prospects of the new single-family home market, so much so that they kept the Housing Market Index unchanged at 60 for the month of January, compared to December 2015.
The HMI is derived from a survey the National Association of Home Builders completes monthly. Member homebuilders are asked for their opinions about current sales of single-family homes, and what they expect sales to be in the next six months. They are also asked to rate traffic of prospective buyers on a grading scale.
The individual scores are used to develop each HMI, and readings above 50 indicate more builders view present and future conditions as being favorable.
"After eight months hovering in the low 60s, builder sentiment is reflecting that many markets continue to show a gradual improvement, which should bode well for future home sales in the year ahead," said Tom Woods, chairman of the NAHB.
"January's HMI reading is right in line with our forecast of modest growth for housing," said David Crowe, chief economist for the NAHB. "The economic outlook remains promising, as consumers regain confidence and home values increase, which will help the housing market move forward."
Separate HMIs are calculated for all four regions of the nation. The Northeast, Midwest and West each declined one point decline to 49, 57 and 75, respectively. The South fell two points to 61.