For August 2012, the National Association of Homebuilders reports the monthly Housing Market Index at 37 — an increase of more than 100% from one year ago and the highest HMI value since February 2007.
The Housing Market Index is an indicator of homebuilder confidence and when it reads 50 or better, the HMI suggests favorable conditions for home builders. Readings below 50 suggest unfavorable conditions for builders.
Despite the recent rise in home builder attitudes, however, the Housing Market Index remains capped below 50 where it’s been since April 2006.
For new construction home buyers in Indianapolis , the HMI may offer insight into the market for new homes through the end of this year. This is because the NAHB Housing Market Index is a composite survey, meant to gauge builder sentiment in three specific areas — current business, future business, and buyer activity.
When all three fronts are rising, it points to an improving market for sellers (i.e. home builders). Unfortunately, though, what’s good for sellers can be damaging to buyers. Builders are less willing to make concessions on price or product when markets are getting stronger.
In August, home builders saw strength across all three categories :
- Current Single-Family Sales : 39 (+3 from July)
- Projected Single-Family Sales : 44 (+1 from July)
- Buyer Foot Traffic : 31 (+3 from July)
Especially noteworthy in the August HMI is that builders project more sales for the next six calendar months than they have projected at any time in the last 5 years. With mortgage rates at all-time lows and buyer foot traffic growing, it’s no wonder confidence is high.
When demand for homes is strong amid stagnant or falling supplies, home prices rise and that’s exactly what we’re seeing in many U.S. markets. It’s a good time to be a Indiana home buyer today, but market momentum appears to be shifting.
If you’re in the market for a newly-built home, therefore, the best “deal” may be the one you get today. Next year, your costs may be higher.
Related Real Estate
See below for the latest North Side Builder Spec Homes. To search all spec homes click the link below or use our interactive search.
$227,570 : 856 Adena Lane, Westfield4 beds, 2 full, 1 half bathsListed with Ridgeline Realty
$530,000 : 2699 East High Grove Circle, Zionsville5 beds, 5 full, 1 half bathsListed with RE/MAX Ability Plus
$195,000 : 15113 Brantley Lane, Noblesville3 beds, 2 full, 1 half bathsListed with Carpenter, REALTORS
$409,000 : 6097 Bartley Drive, Noblesville5 beds, 2 full, 1 half bathsListed with Paradigm Realty Solutions
$339,900 : 15231 Mystic Rock Court, Carmel2 beds, 3 full, 1 half bathsListed with ERA Real Estate Links
$399,900 : 15263 Mystic Rock Court, Carmel3 beds, 3 full, 1 half bathsListed with ERA Real Estate Links
$650,000 : 2809 West High Grove Circle, Zionsville6 beds, 5 full bathsListed with Encore Sotheby`s International
$699,900 : 16751 George Gang Boulevard, Westfield5 beds, 5 full, 1 half bathsListed with RE/MAX Prestige
$749,900 : 16743 George Gang Boulevard, Westfield5 beds, 5 full, 1 half bathsListed with RE/MAX Prestige
$379,990 : 853 Touralosa Drive, Westfield4 beds, 2 full, 1 half bathsListed with ERA Real Estate Links
See all North Side Builder Spec Homes. (all data current as of 5/23/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.