The Housing Market Index (HMI) from the National Association of Homebuilders (NAHB)–typically referred to simply as “builder confidence”–is argued to be both an advance indicator and a lagging indicator depending on who is doing the arguing. It was more prescient as a harbinger of better times ahead roughly a decade ago, but most recently, it was a bit late to drop compared to New Home Sales. There’s more correlation and more sense of it being an advance indicator when comparing it to something more construction-focused such as Housing Starts. Whether chicken or egg, there’s no question that most housing-related metrics have been in increasingly bad shape as 2022 progressed. Builder Confidence is now a sobering example of that, having fallen for 12 straight months to the lowest levels in more than a decade. Those unpleasant distinctions shouldn’t surprise anyone working in the housing market right now. So where can we glean value from the data? Granted, it could be an anomaly based on the nice drop in rates over the past 2 months, but there was a component of the confidence data that actually improved: the 6 month outlook. Bottom line: after a year of pain, builders are seeing the road ahead as being a little bit less gloomy.
Related Articles
A soft landing for the real estate market. What’s next?
July 18, 2023
Mark Paul Cervantes
Housing Wire
Comments Off on A soft landing for the real estate market. What’s next?
About this time last summer, I said it looked like the U.S. housing market could have a soft landing in 2023. Any time you use the phrase “soft landing” it should come with a trigger […]
Housing market: Existing home sales indicate the beginning of a correction
October 27, 2022
Mariel Alumit
Weely Real Estate News
Comments Off on Housing market: Existing home sales indicate the beginning of a correction
Source: Yahoo Finance — BRIAN SOZZI: All right, from record home prices to record mortgage rates, 2022 has been a wild ride for the now ice-cold housing market. But could this pain be good for prospective […]
Impatient homebuyers are gradually accepting the reality of the housing market: BofA
December 5, 2023
kingstu
Housing Wire, Mortage News, Residential
Comments Off on Impatient homebuyers are gradually accepting the reality of the housing market: BofA
Prospective homebuyers are slowly growing less sensitive to home prices and high-interest rates, and fewer of them are willing to wait for a better market to buy a home. According to Bank of America’s 2023 […]