Home Builder Confidence Index Hit Highest Level Since 1999

The HMI the Housing Market Index (HMI) is based on a monthly survey of NAHB members (National Association of Home Builders). It is designed to take an overall view of the single-family housing market. The homebuilders are ask survey questions to rate market conditions for the sale of new homes from today to six month. It also takes in to account buyer traffic for new homes. This is not a report on previously built homes. That number jumped in December 2017. It jumped five points to 74. Again, the highest reading since 1999, and a number above 50 is positive while below is a negative reading. The sentiment number a year ago was 69. Strangely, the NAHB are not in favor of the Republican tax plan, because of the mortgage interest rate deduction is reduced in this plan. CNBC reported recently on this that buyer traffic jumped eight points to 58, while current sales conditions moved up four points to 81, and the expectation of sales for the next six months increase by 3 to 79. What does this say for home builders in Lancaster and Palmdale? Well we reported a number of TTM’s (Tentative Tract Maps) have been extended for another year, so these land owners are hoping the housing developers will break ground and build more home in the valley. If the US pushes forward on the new Stealth Bomber at Planet 42 then new homes will certainly be needed for this engineering group moving in. This should also be good for land sales, and the future looks like somebody is going to dig holes as apposed to leaving parcels flat.