A closely followed index distributed by The National Association of Home Builders/Wells Fargo was released today and it is showing the housing market index has gained 3 points to a seasonally adjusted reading of 40. And that’s the highest it’s been since June 2006. Economists had anticipated a reading of 38.
According to the report from MarketWatch, the index has not jumped up to the desired level of “50” – which indicates good conditions – but has climbed back from as low as 8 during the great recession.
And the housing market index didn’t even hit 20 until December 2011.
Here’s a key quote from the report:
Gains were made for each of the three components. Present sales rose 4 points to 42, sales for the next six months jumped 8 points to 51, while traffic of prospective buyers edged up 1 point to 31.
Gains were seen in each region — notably, a 9-point pickup in the Northeast, which recovered after having suffered an 11-point drop in August. The other regions continued their mostly upward slope.
There are still many factors that could affect the housing market, and the economy is still not taking off like many had hoped, but the outlook on and from home builders is looking very good for the remainder of 2012 and into next year.