Homebuilder confidence for single family sales is at its highest level in 18 months, according to the latest NAHB confidence index. The index was higher than 20 in only one month since August 2007. Still, October’s index value of 20 still indicates the majority of homebuilders see the market as “poor.”
The index for traffic of prospective customers stood at 15, the highest level since September 2009.
The index is derived by surveying homebuilders and asking whether they view conditions as good, fair or poor. The survey asks if traffic of prospective buyers is high, average, or low. Index values below 50 indicate that more survey respondents rate conditions poor than good.