The new home market is improving and home builders indicate they have more confidence in the new home market now than they have had since November 2005, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. According to the HMI, home builders confidence is presently at 59, the highest level the index has been at since November 2005.
The HMI is comprised of several components including builder’s opinions of current sale conditions, buyer traffic and future sales. The response from builders indicate they feel optimistic about current sale conditions and very optimistic about future sales, but not as pleased with current buyer traffic through their displays.
Looking at results of the survey on a regional basis, the Midwest region registered the highest on the index with a 59, followed by the West with a 58, South at 56 and Northeast at 41.