All Three Subindexes, HMI Components Fell in December
Homebuilders and construction in the housing market. (PHOTO: REUTERS)
The National Association of Home Builder’s gauge of homebuilder sentiment fell to 61 in December from 62 the month prior, missing the median forecast of 63.
“Overall, builders are optimistic about the housing market, although they are reporting concerns with the high price of lots and labor,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.
All three HMI components of the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) posted losses in December. The index gauges homebuilder sentiment regarding current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.”
“For the past seven months, builder confidence levels have averaged in the low 60s, which is in line with a gradual, consistent recovery,” said NAHB Chief Economist David Crowe. “With job creation, economic growth and growing household formations, we anticipate the housing market to continue to pick up traction as we head into 2016.”
The index measuring sales expectations in the next six months fell two points to 67, the component gauging current sales conditions decreased one point to 66, and the index charting buyer traffic dropped two points to 46.
