The National Association of Home Builders created a Housing Market Index (HMI), based on a survey of the members of its organization. Within this survey, respondents are asked questions about the current state of the housing market, in regards to sales, the forecasted sales of homes over the next six months and current buyer traffic of new homes, which is a good gauge of demand.
For the month of July, the HMI was released at a level of 68. This is unchanged from last month’s number and inline with expectations. A number at a level over 50 is seen as positive.
Current Sales of New Homes: Sales are very strong for the month of July. They came in unchanged from its prior month’s number at a level of 74.
Estimated Sales of New Homes Over The Next Six Months: Forecasted sales are still very strong, but recent estimates dipped a little bit, dropping the level to 73 instead of 75 that was released last month.
Buyer Traffic of New Homes: The overall buyer traffic seems to be lagging, but still strong as it is at a level over 50 at 52. Regionally broken down, we see that buyer traffic is seen at its strongest in the west at a level of 75 and at a level of 57 in the northeast.