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Posts Tagged ‘prospective buyers’

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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Threat to Industry Needs to be Addressed

June 11th, 2013 Comments off

In an appeal from the Manufactured Housing Institute, MHI Chairman Nathan Smith says unless the Preserving Access to Manufactured Housing Act (H.R. 1779) becomes law, low-to-moderate income prospective buyers will face a tougher time trying to purchase a manufactured home, due to Dodd-Frank Act provisions. The bill will alter the definition of “high-cost” loans as they pertain to small-sized manufactured home loans, and re-define loan originators so as to exclude manufactured home salespeople. Noting the broad support needed from both parties, Smith says, “It is absolutely critical that the members of the manufactured housing industry and its allies clearly demonstrate that this corrective legislation is needed and transcends any partisan politics.” MHProNews has learned similar legislation will be introduced in the Senate shortly, so MHI members and associates need to re-double their efforts in contacting their representatives. Click here for full story.

(Photo credit: mycn2–Nathan Smith, Chairman of MHI))

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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Builder Sentiment up for Senior Market

May 10th, 2013 Comments off

The National Association of Home Builders (NAHB) informs MHProNews their 55+single-family Housing Market Index (HMI) rose 19 points in the first quarter of 2013 to 46, the largest first quarter increase since the measurement began in 2008. Based on builders’ sentiments about the condition of the market for the coming six months, component numbers of the HMI all showed increase from a year ago : Present sales up 19 points to 46; anticipated sales for the next six months rose 21 points to 53; and prospective buyers increased 15 points to 41. Although any number below 50 means builders see the market conditions as poor rather than good, the marked turnaround from a year ago is a positive signal. “The strong year over year increase in confidence reported by builders for the 55+ market is consistent with year over year increases in other segments of the home building industry,” says NAHB Chief Economist David Crowe.

(Photo credit: Sue Orgocki/Associated Press)

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.

(Photo credit: Sue Orgocki/Associated Press)

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.

(Photo credit: Fotosearch)

Index Looking up for Builders

August 15th, 2012 Comments off

The National Association of Home Builders tells MHProNews the NAHB/Wells Fargo Housing Market Index (HMI) reports builder confidence for new, single-family homes rose for the fourth straight month in August to its highest level since Feb. 2007. All three components that comprise the HMI—current sales conditions, sales prospects for the next six months, and traffic of prospective buyers—posted a six point gain in July followed by a two point increase in Aug. to 37. Any number above 50 indicates builders view sales as good rather than poor. Regionally, builder confidence rose nine points to 42 in the Midwest and two points to 35 in the South. The HMI indicates a decline of nine points to 25 in the Northeast and three points to 40 in the West. But as NAHB Chief Economist David Crowe says, “we are still at a very fragile stage of this process and builders continue to express frustration regarding the inventory of distressed properties, inaccurate appraisal values, and the difficulty of accessing credit for both building and buying homes.”

(Photo credit: Fotosearch)