Homebuilder confidence is at a ten-year high.
The latest housing market index from the National Association of Homebuilders came in at 64, the highest since October 2005.
Economists had estimated an index reading of 62 for October. The prior print was revised down to 61 from 62.
“With October’s three-point uptick, builder confidence has been holding steady or increasing for five straight months,”NAHB Chief Economist David Crowe said. “This upward momentum shows that our industry is strengthening at a gradual but consistent pace. With firm job creation, economic growth and the release of pent-up demand, we expect housing to keep moving forward as we start to close out 2015.”
“The September reading suggests robust sentiment among homebuilders and bodes well for our expectation of further improvement in housing activity during H2 2015,” Barclays Blerina Uruçi said.
“[W]e need to see if the survey holds or betters its October level before we get too excited about the prospects for 2016,” Pantheon Macroeconomics’ Ian Shepherdson cautioned. “Still, for now, this is another illustration of the bifurcation of the economy, with anything to do with oil production and exports suffering badly while the services/consumer economy does much better.”
The NAHB’s report is based on a survey of members to get their thoughts on the housing market, as well as their prospects for future new home sales.