The U.S. Housing Market Index
(HMI), calculated by the National Association of Home Builders and Wells Fargo,
edged up again in July. The index bottomed
out in January 2009 then began a slow climb. It rose two points from 15 in
June to 17 in July.
NAHB points out that new and existing home sales have showed increased for
three months running. Builders have taken control of inventories and the number
of homes for sale as of June 2009 was 281,000 - its lowest level in 11 years.
The government reports the Months of Supply dropped to 8.8 in June, the lowest
it has been since October 2007.
NAHB said the seasonally
adjusted S&P/Case-Shiller 20-City and 10-City
Home Price Indices were down, but only slightly, in May over April. Some cities
showed price increases. NAHB says the results are an indication that housing
supply and demand have come into balance, or are approaching balance, and housing
demand is growing. The first-time home buyer tax credit and better home affordability
are helping spur buyers.
Index (seasonally adjusted)
Fargo, Builders' Economic Council (BEC) Monthly Surveys
NAHB's HMI is a weighted,
seasonally adjusted statistic derived from ratings for present single-family
single-family sales in the next
six months, and buyers traffic. A rating of 50 indicates
that the number of positive or good responses received from the builders
is about the same as the number of negative or poor responses. Ratings higher
than 50 indicate more positive or good responses.
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