A gauge of builder confidence in the housing market edged up in January compared to the previous month but was well below its level in January 2006, the National Association of Home Builders and Wells Fargo reported today.

The Housing Market Index, which is based on a survey of present market conditions, traffic of prospective buyers, and expectations for sales in the next six months, rose from 18 in December to 19 in January but was down from 35 in January 2006.

An index score below 50 indicates that more builders view sales conditions as poor than good.

Builders’ confidence in the present state of single-family home sales received a score of 19 in the index, unchanged since December and down from 36 in January 2006. The index score for single-family home sales was 28, up from 26 in December but down from 48 in January 2007. And the traffic of prospective buyers received a score of 14 in the January index, up from 13 in December but down from 26 in January 2007.

“The HMI has held within a narrow two-point range for the past five months, indicating that builder views of housing market conditions essentially haven’t changed over that time,” said David Seiders, NAHB chief economist, in a statement. “Builders are anticipating a time when market conditions will support an upswing in building activity.”

The index is based on a survey that asks builders to rate whether they view conditions as good, fair or poor, and whether they view the rate of traffic of prospective buyers as “high to very high,” “average,” or “low to very low.”

Regionally, the index in the Northeast remained unchanged since December at 20, while the Midwest reported a two-point month-to-month gain to 17 and the South had a three-point gain to 23. The West, meanwhile, had a five-point decline in January compared to December, with an HMI reading of 13. In January 2006, the South had an index score of 41; the Northeast, 38; the West, 33; and the Midwest, 24.

***

Send tips or a Letter to the Editor to glenn@inman.com, or call (510) 658-9252, ext. 137.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×