Thursday, July 31, 2014

Housing Market Indes - Great Numbers!


Numbers are in, and for the first time since January, The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) posted with a score of 53. This meaning that builders in the country overall view the housing market as in a “good” state and builder confidence is rising in the housing market. The HMI surveys builders monthly and posts an average number score that falls into one of three categories: good, fair, or poor.  The HMI states that any number above 50 is deemed a “good” view versus a “poor” one. 

            The Chief Economist of the NAHB David Crowe attributes this score to the recent growth in the labor market. “As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home.” Builders have definitely picked up on that tidbit and are planning for an even bigger increase throughout the rest of the year. The survey, along with collecting builder confidence, also asks builders to rate their expected traffic and future sale expectations. All numbers posted a gain in all sectors of the country (Northeast, South, West, and Midwest.) This overall growth in confidence parallels the success in other markets (retail, food, etc) and could be a sign that the country is beginning to truly shake off hesitations brought on by the economic downtown. The numbers have posted small but steady gains throughout the year and it is expected to only continue. 

            Now is your time to act and take advantage of the market before it hits its full swing. House prices are the lowest now they will ever be as long as the market continues at the rate it is. Act while you can!

No comments:

Post a Comment