After a significant four-point uptick last month, confidence among home builders fell just one point in December to a level of 57 on their national index where any number above 50 is in positive territory.
The National Association of Home Builders/Wells Fargo Housing Market Index released Monday gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.”
“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, Del.
The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from each index component are then used to calculate a seasonally adjusted index.
“After a sluggish start to 2014, the HMI 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,” said NAHB Chief Economist David Crowe. “As we head into 2015, the housing market should continue to recover at a steady, gradual pace.”
The index gauging current sales conditions fell one point to 61, while the index measuring expectations for future sales dropped a single point to 65 and the index gauging traffic of prospective buyers held steady at 45.