The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) reached a level of 62 in September, the highest reading since October 2005.
Two of the three index components posted gains on the month. Current sales conditions rose 1 point to 67, and the index measuring buyer traffic rose to 47, up 2 points from July. The index measuring expectations in the next six months declined 2 points to 68.
The three-month moving averages increased for three of the four regions. The Midwest rose one point to 59, and the South and West each rose one point to 64. The Northeast fell one point to 46.
“The HMI shows that single-family housing is making solid progress,” said Tom Woods, NAHB chair Tom Woods. “However, our members continue to tell us that they are concerned about the availability of lots and labor.”
NAHB Chief Economist David Crowe was upbeat regarding future housing prospects. “Today’s report is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year.”
Read the NAHB release.