The National Association of Home Builders and Wells Fargo released a new housing market index report earlier this week. The report shows that builder confidence in the housing market stayed at 60 this month, a Housing Wire said.
According to the report, the number sits at a six-month low, as observed by Lindsey Piegza, Stifel's fixed income chief economist. NAHB Chairman Tom Woods explains that the figure suggests the overall sentiment of the home builders that the market seems to be improving.
"After eight months hovering in the low 60s, builder sentiment is reflecting that many markets continue to show a gradual improvement, which should bode well for future home sales in the year ahead," Woods said.
"The HMI component gauging current sales condition slightly increased, growing two points 67 in January. The index measuring sales expectations in the next six months dropped three points to 63, and the component charting buyer traffic declined two points to 44. For the three-month moving averages for regional HMI scores, all four regions recorded marginal declines. The Northeast, Midwest and West each posted a one-point decline to 49, 57 and 75, respectively, while the South fell two points to 61," the report said.
Meanwhile, NAHB Chief Economist David Crowe said that the recently released housing market index report shows a "modest growth."
"January's HMI reading is right in line with our forecast of modest growth for housing. The economic outlook remains promising, as consumers regain confidence and home values increase, which will help the housing market move forward," Crowe noted.
"The National Association of Home Builders index has been positive since mid-2014 and in recent months risen to levels last seen before the housing bubble burst. In October 2005, it registered at 68, but just one year later had plummeted to 31," The Wall Street Journal reports.