The National Association of Home Builders/Wells Fargo Housing Market Index increased to 83 in September, its highest reading on record, up five points from the July reading of 78.
NAHB Chairman Chuck Fowke noted that all-time high in buyer traffic have builders seeing positive market conditions. Chairman Fowke also stated that the quick recovery in housing has builders worried about rising costs and delays for building materials, especially lumber.
“Lumber prices are now up more than 170% since mid-April, adding more than $16,000 to the price of a typical new single-family home,” said NAHB Chief Economist Robert Dietz. “That said, the suburban shift for home building is keeping builders busy, supported on the demand side by low interest rates. In another sign of this growing trend, builders in other parts of the country have reported receiving calls from customers in high-density markets asking about relocating.”
The HMI component measuring buyer traffic increased nine points to 73. The component measuring current sales conditions increased four points to 88, and the component measuring sales expectations in the next six months rose six points to 84.
The three-month moving averages for regional HMI scores, the Northeast gained eleven points to 76, the Midwest increased nine points to 72, and the West moved seven points higher to 75. The South jumped eight points to 79.
Read the NAHB release.
