Confidence Among U.S. Homebuilders at a Six-Year High

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By Trey Thoelcke Published
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The National Association of Home Builders/Wells Fargo housing market index increased to a seasonally adjusted reading of 40 in September. That was up from 37 in the previous month, as well as the highest the reading since June 2006. Economists surveyed by MarketWatch and by Bloomberg had each expected a reading of 38.

A number over 50 indicates that more builders view sales conditions as good than poor.

All three components of the index showed gains. Present sales grew 4 points to 42, sales for the next six months rose 8 points to 51, and traffic of prospective buyers was just 1 point higher to 31. Gains were also seen in all regions, especially the Northeast, which saw a 9-point increase.

“Builders across the country are expressing a more positive outlook on current sales conditions, future sales prospects and the amount of consumer traffic they are seeing through model homes than they have in more than five years,” said David Crowe, NAHB’s chief economist. “However, against the improving demand for new homes, concerns are now rising about the lack of building lots in certain markets and the rising cost of building materials. Given the fragile nature of the housing and economic recovery, these are significant red flags.”

The full release is available here.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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