Optimism among the nation’s home builders slipped in the first month of the new year as buyer traffic wained. Sill, the sector remains very optimistic about the rest of this year.
This month, the Housing Market Index came in at 72. The index reflects home builders’ perceptions of current buyer traffic, current sales and expectations for the next six months.
Although the index declined two points from the 18-year high reached in December, it was still five points higher than in January 2017.
An index above 50 indicates there are more builders who
view current conditions as good than those who view them as poor, according to the National Association of Home Builders and Wells Fargo, which jointly released the report Wednesday.
“Builders are confident that changes to the tax code will promote the small business sector and boost broader economic growth,” NAHB Chairman Randy Noel said in the report. “Our members are excited about the year ahead, even as they continue to face building material price increases and shortages of labor and lots.”
Among three index components, the one measuring current buyer traffic was 54, falling from the prior month by four points — the most of any component. A one-point drop left the index
gauging current sales conditions at 79 and the component charting sales expectations for the next six months at 78.
In the South, the three-month moving average for the HMI was 73, up one point from the preceding month, The Midwest rose a point to 70, and the West was up two points to 81. A five-point gain left the Northeast at 59.
