The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) reached a level of 64 in October, the highest reading since late 2005.
Two of the three index components posted gains on the month. Current sales conditions improved 3 points to 70, while the index measuring buyer traffic was unchanged at 47. The index measuring sales expectations in the next six months rose 7 points to 75, after declining last month.
The three-month moving averages for the index increased in all four regions. The Northeast, Midwest and South rose 1 point each to 47, 60, and 65 points, while the West rose 5 points to 69.
“The fact that builder confidence has held in the 60’s since June is proof that the single-family housing market is making lasting gains,” says NAHB Chairman Tom Woods. “However, our members continue to tell us there are still pockets of softness in some markets across the nation.”
NAHB Chief Economist David Crowe was optimistic about the index’s increase in recent months. “This upward momentum shows that our industry is strengthening at a gradual but consistent pace,” said Crowe. “With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015.”
Read the NAHB release.