America’s home builders are more confident about their business than they’ve been in almost a year, and the spike was greatest in the West.
As of September, the seasonally adjusted Housing Market Index was 65 — the highest it’s been since October 2015’s upwardly revised
65.
The index, a gauge of how builders perceive current and upcoming new single-family home sales, was a downwardly revised 59 in August 2016.
The National Association of Home Builders and Wells Fargo
jointly released the latest data Monday.
“With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them,” NAHB Chief Economist Robert Dietz stated in the report. “Though solid job creation and low interest rates are also fueling demand, builders continue to be hampered by supply-side constraints that include shortages of labor and lots.”
One of three Housing Market Index components, current single-family sales, jumped to 71 from 65 in August.
The index reflecting expected home sales over the next six months rose to 71 in September from 66 the prior month.
A third component, the current level of prospective buyer traffic,
climbed to 48 from 44 in August.
In the West, the Housing Market Index was 82 as of September, soaring from just 68 a month earlier.
The South saw a four-point increase from August to 68.
At 56 this month, the index in the Midwest was up three points.
A one-point gain from last month left the index in the Northeast at 43.
