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Posts Tagged ‘perceptions’

Builder Confidence Holds Steady in September

September 17th, 2013 Comments off

According to the National Association of Home Builders (NAHB) Wells Fargo Housing Market Index (HMI), builder confidence in the market for new, single-family homes remained unchanged in Sept. at 58. “While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates,” said NAHB Chairman Rick Judson. Based on builder perceptions of current sales, sales expectations for the next six months and traffic of prospective buyers, the survey has been used for 25 years, and any number over 50 indicates more builders see conditions as good rather than poor. MHProNews has learned all four regions recorded gains: The Midwest and the West each advanced four points, and the Northeast and South both saw gains of two points.

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Newly-built Housing Index Highest in Seven Years

July 17th, 2013 Comments off

According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for July, builder confidence for newly-built single-family homes rose six points to 57, the index’s third consecutive monthly gain and the highest reading since Jan. 2006. Based on builder perceptions of current home sales, traffic of prospective buyers and sales expectations for the coming six months, any number over 50 indicates builders see the market as good rather than poor. While the numbers show definite improvement in the newly-built housing market, NAHB Chairman Rick Judson cautions, “This positive momentum could be disrupted by threats on the policy side, particularly with regard to the mortgage interest deduction and federal support for the housing finance system.” MHProNews has learned all four regions registered positive news: The Northeast gained four points to 40, the Midwest moved up eight points to 54, while the South increased five-points to 50 and the West hit 51 after moving up three points.

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Housing Market Index Posts Largest Gain in over Ten Years

June 17th, 2013 Comments off

For the first time in seven years, builder confidence for newly-built single-family homes has surpassed the 50th percentile mark, which indicates builders see the market as good rather than poor. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) gained eight points to 52. Based on a survey the NAHB has been conducting for 25 years, the HMI measures builder perceptions of current sales, prospective buyers, and sales expectations for the coming six months. The index has not risen eight points since the fall of 2002. “This is the first time the HMI has been above 50 since April 2006, and surpassing this important benchmark reflects the fact that builders are seeing better market conditions as demand for new homes increases,” said NAHB Chairman Rick Judson. Regionally, the Northeast, South and Midwest all posted gains while the West fell one point, as MHProNews has learned.

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Builder Confidence Regains Three Points

May 15th, 2013 Comments off

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) composite reports builder confidence rose from 41 in April to 44 in May, as all three indexes that make up the composite gained. The HMI is based on builders’ perceptions of current sales, sales expectations, and traffic of prospective buyers, all of which showed an increase for May. MHProNews has learned the HMI has been used for 25 years. “Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies,” says NAHB Chairman Rick Judson. The three-month moving averages revealed no changes in the Northeast, Midwest, or South, with index scores of 37, 45, and 42 respectively, while the West dropped six points to 49.

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Builders’ Confidence Wanes

April 18th, 2013 Comments off

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) survey reports builder confidence dropped two points to a composite score of 42 in March as concerns over rising material costs, tight credit, shortages of skilled labor and available lots nag at the market for newly built, single-family homes. As MHProNews knows the survey is based on builders’ perceptions of current sales, sales expectations, and traffic of prospective buyers for the next six months, and has been used by the NAHB for 25 years. Any score above 50 indicates builders think conditions are good, whereas any number below 50 is interpreted as meaning conditions are poor. Regionally, based on a three-month moving average of HMI scores, the Northeast remained at 38, the Midwest lost two points to 45, the South suffered a four-point decline to 42, and the West lost three points to settle at 55.

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NAHB/HMI Index Slides One Point

February 19th, 2013 Comments off

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) for single-family newly-built homes dropped one point to 46 this month as builder confidence leveled off. A score of 50 or better indicates builders see the market as good versus poor, as MHProNews understands. Having been conducted for 25 years, the survey is a composite of builder perceptions of current sales conditions (51), sales expectations in the next six months (50), and traffic of prospective buyers (32). The three-month moving averages showed the Northeast and West gaining 3 and 4 points, respectively; and the South and Midwest each losing a couple. Observed NAHB Chief Economist David Crowe, “The index remains near its highest level since May of 2006, and we expect home building to continue on a modest rising trajectory this year.”

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Builder Confidence Remains Strong

January 16th, 2013 Comments off

The National Association of Home Builders (NAHB) reports the market for newly built, single-family homes remained at 47 on the Wells Fargo Housing Market Index (HMI) for Jan., following eight consecutive monthly gains. As MHProNews has learned, the HMI is at its highest point since April 2006, right before the downturn. “Conditions in the housing market look much better now than at the beginning of 2012 and an increasing number of housing markets are showing signs of recovery, which should bode well for future home sales later this year,” says Barry Rutenberg, chairman of the NAHB. The association’s chief economist, David Crowe, says, “Persistently tight mortgage credit conditions, difficulties in obtaining accurate appraisals and the ongoing stalemate in Washington over critical economic concerns continue to impede the housing recovery.” The index gauges builder perceptions of current home sales, sales expectations for the next six months, and traffic of prospective buyers. Regionally, the North and Midwest registered two point gains while the South posted a three point increase and and the West increased four points.

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Builder Confidence Improves

December 19th, 2012 Comments off

The National Association for Home Builders/Wells Fargo Housing Market Index (HMI) reports builder confidence for new single-family homes rose two points in Dec. to 47, the highest level since April 2006. The HMI rates builders perceptions of market conditions based on current traffic, sales expectations for the next six months, and current sales to reach a composite where any number above 50 indicates sales conditions are good rather than poor. “While there is still much room for improvement, the consistent upward trend in builder confidence over the past year is indicative of the gradual recovery that has been taking place in housing markets nationwide and that we expect to continue in 2013,” noted NAHB Chief Economist David Crowe. As MHProNews understands, NAHB has been conducting this survey for 25 years.

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Builders’ Hopes Rise

July 17th, 2012 Comments off

The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) states builder confidence for newly built, single-family homes rose six points in July, the biggest monthly jump in nearly ten years, and at 35 points, the highest number since 2007. The survey gauges builders’ perceptions based on prospective buyers, current building, and sales expectations for the next six months. Builder confidence gained in every region of the country: The Northeast gained eight points to 36, the Midwest rose three points to 34, the south moved up five points to 32, and the West rose 12 points to 44. MHProNews.com has learned any score over 50 indicates more builders view conditions as good instead of poor.

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Builder Confidence at Highest Point since 2007

March 20th, 2012 Comments off

The National Association of Home Builders (NAHB) tells MHProNews.com builder confidence as measured by the NAHB/Wells Fargo Housing Market Index (HMI) fell one point to 29 in March after five months of increase. A score of 50 or better indicates more builders see the market as good rather than poor. Based on builders’ perceptions of current construction of new, single-family homes, and rating of prospective buyers, the HMI index has been used for 20 years to gauge builder expectations. NAHB Chief Economist David Crowe says, “Builder confidence is now twice as strong as it was six months ago, and the West was the only region to experience a decline this month following an unusual spike in February.” Crowe also notes tight credit and the inventory of distressed properties continues to haunt the new home market. Regionally for March, the Northeast rose five points to 25, two points to 32 in the Midwest, two points to 27 in the South, but dropped 10 points in the West after a gain of 22 points the previous month.

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