September 08, 2003

HOUSING MARKET INDEX GAINS SIX POINTS TO HIGHEST LEVEL SINCE JAN. 2000

The National Association of Home Builders' (NAHB) August Housing Market Index (HMI), which measures builder confidence in the new single-family home market, increased six points in July to 71, its highest level since January 2000. "Looking ahead, builders are optimistic that this strong level of activity can be sustained as the economy starts picking up steam," said NAHB Chief Economist David Seiders.

The HMI is derived from a monthly survey of builders that NAHB has been conducting for nearly 20 years. Homebuilders are asked to rate current sales of single-family homes and sales expectations for the next six months as "good," "fair," or "poor," where any number over 50 indicates that more builders view sales conditions as good than poor.

All of the component indexes registered substantial gains in August as well. The index gauging current sales activity rose by eight points to 77, the index gauging sales expectations for the next six months rose four points to 78, and the index gauging traffic of prospective buyers also rose four points to 55.

Posted by gandlwoods at September 8, 2003 08:48 AM