Date: January 1, 2015
Nearing a nine-year high, the housing market is recovering and gradually getting back to normal with the Housing Market Index (HMI) stabilizing in the mid to high 50s.
The HMI has been conducted for over 30 years by the National Association of Home Builders (NAHB) that quantifies builder’s perceptions of current and future single-family homes sales for the next six months along with reporting back on the rate of current buyer traffic. Any number over 50 indicates that builders perceive the conditions of the market deemed as good rather than poor.
All signs point to a positive and fruitful 2015 with the labor market gaining (321,000 jobs added to the economy in November), existing home sales improving, declining energy prices, and increasing market value of real estate held by U.S. households. National lot development is up 40% over the past year and up 140% from the last two years.
“Members in many markets across the country have seen their businesses improve over the course of the year, and we expect builders to remain confident in 2015,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Delaware.