The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reports builder confidence for new single-family homes increased for the fifth consecutive month to 40, bringing the index to the highest level since June 2006. (Any number above 50 indicates builders see conditions as good rather than poor.) Nationally, housing starts rose 2.3 percent to a seasonally annual adjusted rate (SAAR) of 750,000 in August, fueled totally by increases in the single-family sector, where the pace of new construction rose 5.5 percent to SAAR 535,000 units. NAHB Chief Economist David Crowe says, “Builders across the country are expressing a more positive outlook on current sales conditions, future sales prospects and the amount of consumer traffic they are seeing through model homes than they have in more than five years.” However, he notes serious concerns now exist about availability of lots and the rising cost of building materials. MHProNews has learned by region, the Midwest gained five points to 40, the West five points to 43, while the South marked a four point gain to 36 and the Northeast moved up two points to 30.
(Photo credit: FotoSearch)