- Kevin Kelly, NAHB Chairman
Despite falling slightly, US homebuilders' confidence stayed close to the highest level in nine years in January, adding to signs the residential real estate sector is set to grow this year. According to the National Association of Home Builders, the Housing Market index dropped to 57, compared with a revised 58 in December, with a reading above the 50-mark threshold indicating more builders perceive market conditions as favourable than poor. The index has been above 50 since June 2014. An improving job market and near historically low levels of mortgage rates are likely to continue boosting demand for homes in 2015. A separate report last week showed consumer confidence advanced in January to the highest level in 11 years, raising odds more households will be looking for new homes to purchase. The University of Michigan preliminary consumer sentiment index rose this month to 98.2, the highest since January 2004.
The gauge of current single-family home sales component remained flat at 62, while the indicator of single-family sales expectations for the next six months dropped to 60 from 64, and the index of prospective buyer traffic fell to 44 from 46. A Commerce Department report today is expected to show housing starts rose to an annualized 1.04 million pace in December, up from 1.03 million in the previous month.
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