Builder confidence is staying steady, and that consistency showed up in data this month from the National Association of Home Builders.
“After a sluggish start to 2014, the (Housing Market Index) has stabilized in the mid-to-high 50s index level trend for the past six months, which is consistent with our assessment that we are in a slow march back to normal,” association chief economist David Crowe says in a press release. “As we head into 2015, the housing market should continue to recover at a steady, gradual pace.”
This month, builder confidence was rated at 57, which was down from 58 in November, but the slight dip isn’t considered a bad sign, the press release says. Any rating over 50 indicates that more builders view conditions as good than bad.
The NAHB gauges builder perceptions of current single-family home sales and sales expectations as “good,” “fair” or “poor,” the press release says. The NAHB survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each component are then used to calculate a seasonally adjusted index.
To read the full press release, click here.