Homebuilder confidence hits another 10-year high [Video]
Posted on Monday, November 2, 2015 at 12:18:42 PM
For the third month in a row, homebuilder confidence reached a 10-year high.
In August, September and now October, homebuilder confidence has remained at levels not seen since before the housing crisis began. The National Association of Home Builders/Wells Fargo Housing Market Index hit 64 in October, with anything above 50 representing "good" conditions. The last time the index was as high as it is now was in 2005.
"The fact that builder confidence has held in the 60s since June is proof that the single-family housing market is making lasting gains as more serious buyers come forward," Tom Woods, NAHB chairman, said in a press release. "However, our members continue to tell us there are still pockets of softness in some markets across the nation, and that they face challenges regarding the availability of lots and labor."
David Crowe, the NAHB's chief economist, noted that the consistency of the index since June is attributable to pent-up demand, job creation and economic growth. He explained that while the housing recovery has been gradual, it has also remained consistent in recent months.
The index is a collection of three components, two of which rose - the gauges measuring current sales conditions and sales expectations for the next six months. Meanwhile, the component tracking buyer traffic remained steady.