The nation’s home builders have grown more confident than at any time since Bill Clinton was president. Deregulation was cited as one factor for the optimism.
The seasonally adjusted Housing Market Index landed at 74 for December. That turned out to be the highest it has been since it was 75 in July 1999.
An index of more than 50 is an indication that more home builders view current conditions as good than those who view them as poor.
The
National Association of Home Builders and Wells Fargo jointly reported the index Monday.
In November, the index was a downwardly revised 69, while it was an upwardly revised 69 in the final month of last year.
NAHB Chairman Granger MacDonald noted in the report that new policies aimed at providing regulatory relief were partially responsible for the improvement.
Robert Dietz, chief economist for NAHB, said, “With low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year.”
One of three components comprising the index, buyer traffic, climbed eight points to 58. The second component, which measures current sales conditions, was up four points to 81. A three-point rise left the index reflecting sales expectations at 79.
On a regional basis, the three-month moving overall index in the Midwest was 69, increasing from the prior month by six points — more than any other region. In the South, the index moved up three points to 72. A two-point bump left the West’s index at 79, and the Northeast crept up a point to 54.
