The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) reached a level of 60 in July, the highest reading since November 2005.
Two of the three index components posted gains for the month. Current sales conditions rose 1 point to 66, expectations for sales in the next six months rose 2 points to 71. Buyer traffic fell 1 point to 43.
The three-month moving average of all four regions posted month-over-month gains in July. The Northeast and West rose three points each to 47 and 60, while the South and Midwest rose 1 point each to 61 and 55.
NAHB’s Chief Economist David Crowe noted that July’s reading reflects stronger sales and job growth, but warned of home building challenges ahead, particularly in terms of shortages and labor.
Read the NAHB/Wells Fargo release.