Homebuilder Confidence Nears Record High

The National Association of Home Builders' Housing Market Index measures how confident home builders are in the current and future market for new homes. The survey – which has been conducted for 30 years – is considered a good barometer of the housing market's health, as it can be used to forecast the likelihood that builders will increase the number of homes they build. Scored on a scale where any number above 50 indicates more builders feel the market is in good condition rather than poor, the index is conducted monthly and concentrates on buyer traffic, sales conditions, and expectations for the next six months. In November, the HMI rose to 70, which is the highest score since March of this year and the second highest level since July 2005.

Robert Dietz, NAHB's chief economist, says it's a sign that the market will continue to grow. “Demand for housing is increasing at a consistent pace, driven by job and economic growth, rising homeownership rates and limited housing inventory,” Dietz said. “With these economic fundamentals in place, we should see continued upward movement of the single-family housing market as we close out 2017.”