NAHB (Nation Association of Home Builders) Long-term Chart
Date: 15 August 2006
Reacting to what they perceive as increasing
consumer uncertainty regarding the market for new single-family homes, builders
tempered their views on current and expected sales activity in the Wells
Fargo/National Association of Home Builders Housing Market Index (HMI) for
August, released today. The HMI declined seven points to 32, its lowest level
since February of 1991. This was the seventh consecutive month in which builder
confidence, as measured by the index, has fallen.
(Chart courtesy of GVI John)
(Chart courtesy of Bart13, SiliconInvestor)Derived from a monthly survey that NAHB has been conducting for 21 years, the
NAHB/Wells Fargo HMI gauges builder perceptions of current single-family homes
and sales expectations for the next six months as “good,” “fair” or “poor.” The
survey also asks builders to rate traffic of prospective buyers as either “high
to very high,” “average” or “low to very low.” Scores for each component are
then used to calculate a seasonally adjusted index where any number over 50
indicates that more builders view sales conditions as good than poor.
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