Home Builders Emit a Glimmer of Optimism

 

Housing Market Index (HMI) rose to 16 in October from 13 in September. HMI is based on perception of housing industry with a score of 50 being average and below 50 scores show negative attitudes.
Courtesy of Calculated Risk Blog

The NAHB/Wells Fargo Housing Market Index (HMI) rose to 16 in October from 13 in September, its first monthly increase since May and a return to its June level. All three of the components of the index — current traffic, present sales and sales expectations for the next six months — saw improvement, with the largest coming from sales expectations, which climbed five points from 18 to 23.

Along with some other small but positive housing signals, the latest HMI points to a housing market recovery from the post-tax credit falloff and a softening economy in the late spring and summer. Expect the housing market to continue to make a painfully slow recovery, which will eventually help the landscape industry.

New job formations slowed in the second and third quarters and both businesses and consumers pulled back on purchases. The uncertainty over economic growth continues to constrain new housing despite historically low interest rates, leveling house prices and pent-up demand from unformed households.

– Courtesy of NAHB