The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) increased one point in June to its highest level since May of 2007. That might not sound like a big deal, but every little point counts – and in addition, the HMI component for current sales conditions rose two points to 32, its highest level since April 2007.
Derived from a monthly survey the NAHB has been conducting for more than 25 years, the HMI increased to 29 for newly-built, single-family homes.
More important info:
- The components for sales expectations and prospective buyer traffic were unchanged at 34 and 23, respectively.
- Regionally, the Midwest posted the strongest returns, increasing by five points to 31, while the West rose four points to 33 and the Northeast and South both fell by two points to respective amounts of 29 and 26.
The scores still have a little ways to go – any number over 50 indicates that more builders view conditions as good than poor – but Barry Rutenberg, the NAHB’s chairman and a home builder in Gainseville, Fla., said June’s gains are part of a larger trend towards recovery.
“This month’s modest uptick in builder confidence comes on the heels of a four-point gain in May and is reflective of the continued, gradual improvement we are seeing in many individual housing markets as more buyers decide to take advantage of today’s low prices and interest rates,” Rutenberg said.