WASHINGTON (11/18/15)--Homebuilder confidence faded in November, as the National Association of Home Builders’ monthly index of builder confidence dropped three points to 62 (Economy.com Nov. 17).
The present sales subcomponent fell to 67 from 70, while the future sales subcomponent dropped to 70 from 75.
“This suggests homebuilders overestimated the number of serious buyers who plan to enter the market,” said John Weis, Moody’s analyst (Economy.com). “Prospective buyer traffic improved slightly, which partially offset the weakness in sales conditions.”
Still, the overall housing market index remains on pace with the six-month average of 62, which sits near its highest level over the last decade.
The average for the index since its inception in 1985 is 48, according to Weis. This perhaps highlights “the renewed strength of the national housing market index over the past six months.”
By region, sentiment fell by one point in the Midwest to 59 and by five points in the South to 62. The Northeast remained flat and the West gained one point.
“The West has solidified itself as the most optimistic region in the country after trading the position with the South several times over the past six months,” Weis said.
The traffic of potential buyers climbed to 48 from 47 during the month.