The National Association of Home Builders’ Housing Market Index is a monthly measure of builder confidence in the market for newly built homes. Based on a survey of home builders, the index is scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In December, the index was unmoved from the month before, holding steady at 46. Carl Harris, NAHB’s chairman, says builders continue to have concerns but are optimistic about the future. “While builders are expressing concerns that high interest rates, elevated construction costs, and a lack of buildable lots continue to act as headwinds, they are also anticipating future regulatory relief in the aftermath of the election,” Harris said. “This is reflected in the fact that future sales expectations have increased to a nearly three-year high.” It’s true. The index component measuring expectations for the next six months was up another three points in December, matching its highest level since April 2022. (source)
