NAHB Builder Confidence Consecutive Three Month Rise
January 3, 2012 at 4:23 am plumbtile 1 comment
While the builder confidence for newly constructed single-family homes is still somewhat uncertain in the public eye, according to the National Association of Home Builders (NAHB), it has climbed two points on the NAHB and Wells Fargo Housing Market Index (HMI) for the month of December. Builder confidence has been on the rise and improving for three consecutive months and currently brings the index to its highest mark since May, 2010. Great news to us here at Plumbtile!
Bob Nielsen is the chairman of the National Association of Home Builders (NAHB) and also a home builder from Reno,NV. “While builder confidence remains low, the consistent gains registered over the past several months are an indication that pockets of recovery are slowly starting to emerge in scattered housing markets. However, the difficulties that both builders and buyers continue to experience in accessing credit for new homes are holding back potential sales even in areas where economic conditions are improving,” stated Mr. Nielsen.
Determined from an ongoing monthly survey the NAHB has conducted for over twenty years, the NAHB/Wells Fargo Housing Market Index scales builder perceptions of single-family home sales and expectations for the following six months, with a rating of good, fair or poor. The survey also calculates prospective buyer traffic with ratings of high to very high, average or low to very low. The scores from the surveys are used to determine an adjusted index. Scores with numbers over 50 indicate more builders perceive the conditions as “good.”
All three component indexes of the HMI determined December as the third consecutive month of improvement. According to the calculations of the surveys, the current sales conditions component rose two points in December, which brought it up to 22. The sales expectation component for the following six months rose one point, which brings it to 26 on the scale. Rising three points to 18, the third component of gauging traffic of prospective buyers is currently at the highest point it has been since May 2008.
All of this is a very good way to begin 2012 for our contractor and designer customers! Be sure to get a jump on the new year with this news by taking advantage of great prices on building and interior design supplies.
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Arie Goldman | March 12, 2012 at 2:46 am
I’ve never felt like I was within the cookie business. I’ve for ages been in a feel good feeling business. My job is usually to sell joy. My job is usually to sell happiness. My job is always to sell an event.
Business is alone an electrical.