Builder confidence is the highest it’s been since the height of the housing boom last decade
According to the December housing market index from NAHB, buyer traffic crossed the neutral threshold for the first time since 2005.
MarketWatch reports that the index passed 50, the number that indicates whether builders think that traffic of prospective buyers is expanding or contracting. The last time it was above 50 was in late 2005.
In other words, in recent memory, builders have only taken a glass-half-full view of their traffic during a time of excessive speculation and frenzied buying. There’s nothing wrong with that, of course. Builders certainly aren’t behaving in a speculative manner right now. There were 20% fewer new homes available for sale last month than the average over the past five decades, according to Commerce Department data, despite a much bigger population.
Also from the December index, builder confidence reached a reading of 70, the highest since July 2005.