Photo: Robert Clark
US homebuilder confidence in the housing market hit its highest level in almost 20 years in December. That’s according to the results of a new survey conducted by the National Association of Homebuilders (NAHB).
And, the prospect of deregulation under the Trump administration has homebuilders looking to the 2018 market with strong optimism.
The monthly survey is conducted by the NAHB and gauges homebuilder perceptions of the state of the single-family housing market. It’s comprised of three components: overall perception of the current and the future state of the market, as well as homebuyer traffic.
Scores for each component are used to calculate the Home Market Index (HMI), where any number over 50 is indicative of a more favorable view. All three survey components saw increases in December.
Overall builder confidence in the single-family market rose 5 points to a reading of 74 on the NAHB Home Market Index (HMI) in December. This month’s uptick follows a downward revision to the HMI in November.
December’s HMI reading was the highest since July 1999, according to NAHB data.
“Housing market conditions are improving partially because of new policies aimed at providing regulatory relief to the business community,” NAHB Chairman Granger MacDonald says in the report.
Meantime, the measure of homebuyer traffic rose 8 points to 58, which according to NAHB is a good indication that “demand for housing is on the rise.”
Also, the measure of the current state of the market rose 4 points to 81, while the index measuring the next months jumped 3 points to 79.
“With low employment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family sector next year,” NAHB says in the report.
Click here to read the entire report.