WASHINGTON (10/20/15)--Homebuilder confidence improved in October, as the National Association of Home Builders’ monthly housing market index climbed three points to 64 from September’s upwardly revised 61 (Economy.com Oct 19).
The reading was four points higher than the six-month average of 60, and the highest number since August 2005.
“Five consecutive months of homebuilder sentiment in the low 60s indicate the strength of the housing market for new single-family homes,” said John Weis, Moody’s analyst (Economy.com). “The industry is on solid ground; the strongest it has been in years.”
The present single-family home sales subcomponent rose three points to 70, while the future sales subcomponent jumped seven points to 75.
While prospective buyer traffic failed to make any significant gains, the subcomponent did not lose any ground in October, remaining at its highest level of the year.
“The present and future sales components were responsible for the uptick this month, with future sales rising the most as the number of serious buyers in the market increases,” Weis said.
Furthermore, all regions posted overall increases except for the Midwest.
The West recorded the highest increase with an 11-point gain to 76, the Northeast saw a six-point gain to 52, and the South posted a one-point gain to 67. The Midwest fell two points to 59.
“With the surge this month, the West has surpassed the South as the most optimistic region,” Weis said. “These regions have traded this distinction multiple times this year, while the Northeast has struggled the most to gather any appreciable momentum.”