The National Association of Home Builders/Wells Fargo Housing Market Index rose to 70 in December, a 7 point increase from November and the highest reading in over a decade.
“Though this significant increase in builder confidence could be considered an outlier, the fact remains that the economic fundamentals continue to look good for housing,” said NAHB Chief Economist Robert Dietz. “The rise in the HMI is consistent with recent gains for the stock market and consumer confidence. At the same time, builders remain sensitive to rising mortgage rates and continue to deal with shortages of lots and labor.”
All three HMI components rose in December. The component measuring current sales conditions rose 7 points to 76, the component measuring sales expectations rose 9 points to 78, and the component measuring buyer traffic rose 6 points to 53.
The regional three-month moving averages for HMI scores increased as well. The Northeast rose 6 points to 51, the Midwest rose 3 points to 61, the West rose 2 points to 79, and the South rose 1 point to 67.
Read the NAHB release.