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Confidence in housing market dipped in November

Posted on Tuesday, November 17, 2015 at 1:31:44 PM

U.S. homebuilders' confidence in the housing market dipped slightly in November from last month's decade-high. According the National Association of Home Builders' Housing Market Index (HMI), a gauge of confidence nationwide, sentiment fell from a revised 65 in October - the highest level seen since October 2005 - to 62 this month. Any figure above 50 indicates conditions are good.

November's index may suggest that the housing market has slowed marginally. Every component of the HMI was lower in November. Confidence in present-day single family sales dropped to 67 from 70 and single family sales for the next six months fell from 75 to 70. Only prospective buyer traffic showed positive change, inching up from 47 to 48. Still, recent strong job numbers, climbing rental costs and historically low residential financing rates continue to drive robust housing sales. 

NAHB Chairman Tom Woods told Bloomberg Business that regular HMI component readings above 60 are "a sign that the single-family housing market is making long-term headway. However, our members continue to voice concerns about the availability of lots and labor." Considering where the housing market was only five years ago, those are, comparatively, good problems to have.